Real estate contracts are the backbone of every property transaction, whether you’re buying a single-family home or negotiating a commercial lease. But when expectations, obligations, or timelines aren’t clearly defined or followed, disputes can erupt—turning deals into lawsuits.
At Strang Tryson, we regularly represent clients involved in Florida real estate contract disputes. Here’s what typically goes wrong—and how to avoid it.
Failure to Disclose Material Defects
Sellers in Florida are legally required to disclose known material defects that could affect the value of the property. When they don’t—and a buyer discovers issues after closing—it often leads to claims of misrepresentation or fraud.
Buyers should:
- Order thorough inspections
- Ask direct questions in writing
- Have an attorney review disclosures
Sellers should:
- Disclose known defects honestly and clearly
- Provide repair documentation
- Avoid vague or evasive language
Disputes Over Earnest Money Deposits
Earnest money shows good faith—but when a deal falls through, both sides often believe they’re entitled to it. Common disputes involve who defaulted, whether deadlines were met, and whether contingencies were properly waived.
To avoid conflict:
- Define deposit release terms clearly in the contract
- Adhere to all timelines and conditions
- Keep communication documented
Inspection and Repair Disagreements
Post-inspection negotiations can become contentious, especially when:
- The buyer demands excessive repairs or credits
- The seller refuses to address major issues
- The parties disagree on what’s “reasonable”
A well-drafted contract should:
- Specify what types of defects warrant repair
- Allow a clear negotiation period after inspection
- Define whether the property is sold “as is” or not
Missed Deadlines (Financing, Appraisal, Closing)
Florida real estate contracts typically include hard deadlines. If a buyer doesn’t secure financing or the seller can’t deliver clear title by the agreed-upon date, the deal can collapse—or one party may exercise their rights to terminate the contract..
Tips:
- Use calendar reminders and legal checklists
- Build in buffer periods and clear consequences for delays
- Amend contracts in writing if dates change
Ambiguous or Poorly Drafted Clauses
Unclear language leads to different interpretations—and disputes. This is especially true for:
- Contingency clauses
- Rent-back agreements
- Custom addendums
Avoid this by having an attorney draft or review any non-standard language. Don’t rely solely on templates or boilerplate forms when unique conditions apply.
Failure to Perform
Sometimes a party simply doesn’t show up at closing or refuses to sign. This could be due to cold feet, new offers, or unforeseen circumstances. In Florida, this can result in breach of contract lawsuits or specific performance actions (forcing the sale).
To protect yourself:
- Require meaningful deposits
- Include defined remedies for breach ( for example, liquidated damages, specific performance)
- Document all communications if the deal starts to unravel
Unpermitted Work or Zoning Violations
Buyers may discover that improvements made by the seller weren’t permitted or don’t comply with local zoning laws. This can delay closing or result in expensive fixes.
Due diligence should include:
- Reviewing permit history
- Consulting with municipal building departments
- Including contract language requiring seller representation of legal compliance
Strang Tryson’s Take
Our firm helps buyers, sellers, investors, and brokers avoid contract landmines by getting involved early. A well-written contract, combined with smart due diligence and clear communication, is the best way to prevent expensive disputes.
In the event of conflict, we move quickly to enforce, mediate, or resolve the matter—protecting your investment and peace of mind.
