You’ve found the house. You’ve signed the contract. You’ve scheduled the inspection and started dreaming about what color you’ll paint the living room. Then the seller calls and says they’ve changed their mind.
Or maybe you’re the seller — and you’ve realized you agreed to a price you can’t live with, or found a better buyer. Can you get out?
The answer is: it depends entirely on where you are in the contract timeline and what the contract actually says. In Florida, nearly every residential real estate transaction uses the FAR/BAR “As Is” Residential Contract for Sale and Purchase — and the most misunderstood, most litigated provision in that contract is Section 8.
What Is the FAR/BAR Contract?
The FAR/BAR contract is the standard residential purchase contract jointly produced by the Florida Association of Realtors and The Florida Bar. It is not the only contract used in Florida real estate, but it is by far the most common — particularly the “As Is” version, which became dominant after the housing crisis and remains the standard today.
The contract is nine pages of dense legal language that most buyers and sellers sign without fully reading. That is almost always where the problems begin.
Section 8: The Inspection Period — The Most Important Window in the Transaction
Section 8 of the FAR/BAR “As Is” contract governs the inspection period. It is the single most consequential provision in the entire document for both buyers and sellers, and it is routinely misunderstood by both.
What Section 8 Says in Plain English
The buyer has a specified number of days — negotiated at contract execution, typically 10 to 15 days in South Florida — to inspect the property. During this period, the buyer may conduct any inspections they choose. If the buyer is not satisfied with the results for any reason, or no reason at all, the buyer may cancel the contract and receive a full refund of their deposit.
The seller has no equivalent right during this period. Once the inspection period expires without the buyer canceling, the transaction becomes significantly harder for either party to exit without legal consequences.
What This Means for Buyers
The inspection period under Section 8 is the buyer’s most powerful contractual protection. It is a largely unconditional right to walk away. You do not need to find something wrong with the property. You do not need to give the seller a reason. You simply need to deliver written notice of cancellation before the inspection period expires.
This is why the inspection period deadline is the most important date in your entire transaction. Miss it, and your leverage drops dramatically.
What This Means for Sellers
Sellers sometimes believe they have mirror rights — that if the buyer can walk away during the inspection period, so can they. This is wrong. The FAR/BAR contract’s inspection period rights run almost entirely in favor of the buyer. A seller who attempts to cancel during the buyer’s inspection period is almost certainly in breach of contract.
When Can a Seller Legally Back Out?
A seller can exit a Florida real estate contract without legal consequence in a limited number of situations:
| Situation | Can Seller Exit? | Notes |
|---|---|---|
| Before contract is fully executed | Yes | No binding contract exists yet |
| Buyer fails to meet financing contingency | Depends | Only if contract includes financing contingency and buyer cannot perform |
| Buyer defaults first | Yes | Seller may terminate and retain deposit per contract terms |
| Mutual agreement to rescind | Yes | Both parties agree in writing to cancel |
| Seller simply changes their mind after execution | No | This is a breach of contract |
| Seller receives a better offer after execution | No | Also a breach — buyer has legal remedies |
What Happens When a Seller Breaches the Contract?
When a seller backs out of a Florida real estate contract without legal justification, the buyer has several potential remedies under Florida law.
Return of Deposit
At minimum, the buyer is entitled to the return of their earnest money deposit. This is typically the least contested remedy — the real dispute is usually over what else the buyer can recover.
Specific Performance
Florida courts can order specific performance in real estate cases — meaning the court compels the seller to actually complete the sale at the agreed price. Real estate is considered unique under Florida law, which is why monetary damages alone are sometimes considered inadequate. Specific performance litigation is expensive and can take years, but it is a real remedy in cases where the buyer truly wants the property.
Money Damages
The buyer can sue for the difference between the contract price and the fair market value of the property at the time of breach, plus consequential damages — moving costs, temporary housing expenses, inspection fees, appraisal costs, and other out-of-pocket losses caused by the seller’s breach.
“The cases that hurt buyers the most aren’t the ones where the deal falls apart during the inspection period — those are painful but clean. The devastating cases are when the seller backs out after the inspection period closes, when the buyer has already terminated their lease, already put their own home on the market, already booked movers. At that point you’re not just losing a house — you’re losing months of your life and tens of thousands of dollars.”
What About the “As Is” Language?
This is one of the most common misconceptions I encounter. The “As Is” designation in the FAR/BAR contract refers to the condition of the property — it means the seller is not obligated to make repairs. It does not mean the seller can exit the contract freely. A seller who uses “As Is” to argue they can back out of a completed contract is misreading the contract entirely.
Frequently Asked Questions
Dealing with a Real Estate Contract Dispute?
Whether you’re a buyer whose deal just collapsed or a seller trying to understand your options, The Pregen Firm can help. Attorney Ari Pregen has handled real estate litigation across Broward, Miami-Dade, and Palm Beach counties since 2011.
Talk to Ari — Free Consultation Or call directly: 954-712-7416