What Happens When a Buyer or Seller Defaults/Breaches a Florida Residential Contract for Sales and Purchase?
Are you a Buyer, Seller or Real Estate Agent in Palm Beach County? Are you under contract and the deal just went south? Is the title company, law firm or real estate agent/broker holding your escrow monies hostage? You may be having a West Palm Beach Escrow Deposit Dispute.
If you have already referred to your Florida Residential Contract for Sales and Purchase and it is your position that the other party is in default, and all communications with the otherside have been exhausted including both parties not signing-off on a cancellation and disbursement of escrow funds, we then need to look at the proper Florida procedures for having those escrow monies/ earnest money deposits returned.
According to the 2017 Florida Residential Contract for Sales and Purchase, paragraphs 16 and 17 state:
- DISPUTE RESOLUTION: Unresolved controversies, claims and other matters in question between Buyer and Seller arising out of, or relating to, this Contract or its breach, enforcement or interpretation (“Dispute”) will be settled as follows:
(a) Buyer and Seller will have 10 days after the date conflicting demands for the Deposit are made to attempt to resolve such Dispute, failing which, Buyer and Seller shall submit such Dispute to mediation under Paragraph 16(b).
(b) Buyer and Seller shall attempt to settle Disputes in an amicable manner through mediation pursuant to Florida Rules for Certified and Court-Appointed Mediators and Chapter 44, F.S., as amended (the “Mediation Rules”). The mediator must be certified or must have experience in the real estate industry. Injunctive relief may be sought without first complying with this Paragraph 16(b). Disputes not settled pursuant to this Paragraph 16 may be resolved by instituting action in the appropriate court having jurisdiction of the matter. This Paragraph 16 shall survive Closing or termination of this Contract.
- ATTORNEY’S FEES; COSTS: The parties will split equally any mediation fee incurred in any mediation permitted by this Contract, and each party will pay their own costs, expenses and fees, including attorney’s fees, incurred in conducting the mediation. In any litigation permitted by this Contract, the prevailing party shall be entitled to recover from the non-prevailing party costs and fees, including reasonable attorney’s fees, incurred in conducting the litigation. This Paragraph 17 shall survive Closing or termination of this Contract.
The above information may sound a bit overwhelming. And that’s ok. The Law Office of Ryan S. Shipp, PLLC and its experienced team of real estate attorneys and support staff are here to assist and work with you through all of your West Palm Beach Escrow Deposit Disputes. Whether it be commercial or residential contract, we’re here for you. The Law Office of Ryan S. Shipp, PLLC assists its clients in the areas of Real Estate Law and Business Law in Palm Beach County and throughout South Florida.
Call us today at 561.699.0399 or visit us at our Lantana, Florida office location. Sometimes you need a West Palm Beach Real Estate Attorney. And when you do, The Law Office of Ryan S. Shipp, PLLC is here for you.
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