When can termination occur? The buyer’s right to cancel is spelled out in paragraph 12. The buyer has up to 15 days to have the property inspected. He may terminate the contract for any reason before the end of the inspection period.
- How does the buyer communicate to the seller that he’s canceling? In writing. This can be in the form of a Release and Cancellation notice (though not required) or, per section 18, standard O, via mail, personal delivery or electronic (including PDFs) media. An email from a buyer’s agent to the listing agent, clearly indicating the buyer’s intent to cancel before the end of the inspection period, is sufficient.
- Does the seller have to sign the Release and Cancellation notice? There is nothing in the AS IS contract requiring the seller to approve or sign off on the buyer’s intent to cancel. An escrow agent may require the seller to execute a Release and Cancellation notice before returning deposit money, but that doesn’t affect the buyer’s initial notice of cancellation.
Remember, requirements vary depending on the contract used, so it is important to review carefully the contract you choose to determine when a party may cancel and what must be done to terminate.
Buyer’s Agents: If your buyer chooses to terminate the deal, you should preserve proof that the notice was sent before the expiration of the inspection period. For example, save a copy of the email you sent to the listing agent indicating the date and time of the notification.
Meredith Caruso is Manager of Member Legal Communications for Florida Realtors
© 2016 Florida Realtors®
Reprinted with permission Florida Realtors. All rights reserved.