Real Estate Contract Law
Most Downtown West Palm Beach Realtors don’t even know when they’re making a mistake with their clients and contracts. Often the mistakes look like logical parts of the proper steps as more experienced realtors continue to make these same mistakes. One in particular is the protocol for contract cancellation.
In most events, cancellation occurs either during the appraisal time period or the acquiring financing time period. Realtors are careful (most of the time) to stay within those time frames and cancel accordingly. The mistake isn’t made in the timing but rather in the execution.
It is insufficient for a realtor to cancel a contract verbally or written on behalf of a client. The Cancellation has to come direct from the client. A Release and Cancellation form which can be found through the Florida Association of Realtors, must accompany a verbal or emailed/in writing cancellation. As well, it must come within the timeframe designated on the contract. Even if the cancellation comes verbally before the end of the time period, but the release hasn’t been signed and sent, it could easily be contested in a court of law.
The bottom line here is the cancellation has to come from the client in writing and not the Realtor. I wish I could tell you that every contract that is accepted gets to the closing table, but unfortunately that is just not true. There are plenty of homes that don’t make it through inspection and don’t obtain necessary financing. Release and Cancellation forms are necessary and needed.
At James N Brown PA, we advocate not only for buyers and sellers but we also advocate for Realtors! Contact us with your Real Estate Contract Law questions and concerns.