3 Potential Ways to Terminate a Florida Pre-Construction Contract

Just because you’ve signed a pre-construction contract on a Florida home or condo does not always mean you are completely locked into the transaction. Circumstances in our lives can change in an instant, and as a buyer it may become necessary for you to attempt to terminate your pre-construction contract.

However, pre-construction condo and home deposits are significant, and no one wants to lose that money if they are forced to back out of the transaction. And what about when the construction is not being completed to your expectations or standards? Are you simply supposed to accept the failings, count your losses, and move on?

Fortunately, there are several legal remedies that a skilled real estate attorney can pursue on your behalf that may allow you to terminate your Florida pre-construction contract and recover your deposit. Below we have outlined three of the most common courses of action.

Please keep in mind, every case is unique and this blog is not intended as legal advice for your specific circumstances. If you need to terminate a pre-construction contract, contact Ray Garcia Law and allow us to review your contract and situation.

1) Interstate Land Sales Full Disclosure Act (ILSFDA)

This federal legislation was passed in 1968 to help protect consumers from fraud and abuse in the sale of property. Originally intended to help protect unsuspecting buyers from being sold undesirable Florida swampland, it was amended in 2013 to exclude new condominium constructions, but can still be a useful cause of action in terminating your pre-construction contract. The Act dictates that developers disclose a significant amount of information about the property being sold through a Property Report, and they must also register subdivisions with the Consumer Financial Protection Bureau. If the developer fails to make proper disclosures on the property or fails to properly register, your attorney may be able to utilize the ILSFDA as a means of terminating your pre-construction contract and even to recover civil damages.

2) Florida Statute Chapters 718 and 720

Similar to the federal ILSFDA, Florida Statute Chapters 718 and 720 are state laws requiring disclosures and dictating other regulations that developers must adhere to when building and selling condominium developments and housing developments. Chapter 718 specifically covers Florida condo developments, while 720 covers housing developments. Some of disclosures which developers are required to provide to buyers pursuant to these statutes include any significant material changes to the development, HOA documentation, summary listing fees, and more. These statutes also regulate how purchaser deposits can be held and maintained. Violations of any tenets of Florida Statute Chapter 718 or Chapter 720 could provide a reasonable cause of action to terminate your pre-construction contract and recover your deposit.

3) Breach of contract

Any breach of your pre-construction contract committed by a developer could be enough grounds for termination of the contract. The type of breach could include a wide variety of actions such as a failure to adhere to an explicitly agreed upon timeline. In order to establish whether a breach of your specific contract has been committed, you will need to have an attorney review the details of your contract and case.

If you need to terminate a pre-construction contract and recover your deposit, contact Ray Garcia Law today and let us fight to protect your rights and interests.