Buying or selling a home is one of the most significant financial transactions many Floridians will ever make. While the process may seem straightforward, it often involves complex legal issues that can quickly turn a dream deal into a legal headache.
At St. Johns Law Group, we’ve seen firsthand how seemingly minor missteps in residential real estate can lead to costly disputes. Whether you’re a first-time homebuyer or a seasoned investor, understanding common legal pitfalls in Florida real estate sales is essential.
Contract Disputes
The purchase agreement is the backbone of any real estate transaction. Yet, it’s also a common source of conflict. Disputes often arise over contingencies, timelines, deposits, and the interpretation of specific clauses. For instance, a buyer may think the seller has to perform specific repairs before closing, whereas the seller maintains that those repairs were not part of the agreement.
Contract confusion or missed deadlines can result in breach-of-contract claims or even lawsuits. Therefore, having an attorney draft or review your contract is critical, especially since it’s much simpler to avert problems in advance than to fix them later.
Title Issues and Liens
It is important to ensure the property has a clear and marketable title before closing. Unfortunately, title defects such as unpaid liens, prior mortgages, judgments, or boundary disputes can derail a sale.
A thorough title search—usually conducted by a title company or attorney—can uncover these problems. In some cases, sellers may not even realize there’s an issue until the closing process is underway. If you’re a buyer, obtaining title insurance can offer peace of mind and financial protection against hidden defects.
Disclosure Failures
In Florida, sellers must reveal any known defects that significantly impact the property’s value and are not easily seen. Typical examples involve roof leaks, mold problems, or issues related to plumbing or foundation.
Failure to disclose these issues can lead to lawsuits after the sale. Buyers who discover undisclosed defects may sue for repair costs, contract rescission, or damages. In contrast, sellers who openly disclose property conditions tend to encounter fewer legal issues after the sale.
Inspection and Appraisal Conflicts
Home inspections frequently uncover problems that may not have been visible during the showing. In such cases, buyers may seek to renegotiate the price or request repairs. If the seller declines, the transaction may collapse. Likewise, if an appraisal returns a figure below the agreed-upon purchase price, the buyer’s financing could be jeopardized, particularly if the contract lacks an appraisal contingency.
These situations underscore the importance of having contingency clauses in the purchase agreement and working with legal professionals who can help navigate challenging conversations.
Financing and Closing Delays
Financing challenges can often cause stress in Florida real estate transactions. Mortgage approvals may fail because of credit problems, appraisal irregularities, or shifts in income. Even with secure financing, document preparation delays, inspection hold-ups, or title clearance issues can postpone closing dates, potentially endangering the deal altogether.
Proper communication between parties, realistic contract timelines, and attorney involvement can help keep the process on track.
Protect Your Investment, Contact Us Today To Learn More
While real estate transactions involve complex legal documents and potential pitfalls, you do not have to navigate them alone. At St. Johns Law Group, we help buyers and sellers move through Florida’s real estate market with confidence.
From contract reviews and title issues to closing representation, our team is here to ensure your rights and investment are fully protected. Contact St. Johns Law Group today to schedule a consultation and learn how we can support your next transaction.