Homosassa, FL asked in Real Estate Law for Florida

Q: What is the obligation of the seller if the sales contract states the following:

“Both buyer and seller agree that upon appraisal if the appraisal is less than the contract price then a new purchase price will be negotiated”

With this verbiage added to the contract what obligations under the real estate laws of the State of Florida would the seller be held to?

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2 Lawyer Answers
Michael  Mayoral
Michael Mayoral
Answered
  • Coral Gables, FL
  • Licensed in Florida

A: At first glance, it means that if the appraisal comes in at less than the contract price, then the contract is essentially terminated as there is no meeting of the minds as to an essential term of the contract. The confusing part is that it says "then a new purchase price will be negotiated," but it doesn't appear to state what that new purchase price would be or how that new price would be determined. You should consult an attorney specializing in contract and/or real estate law before entering into any additional agreement, and before entering into any important contract really.

Terrence H Thorgaard agrees with this answer

1 user found this answer helpful

Terrence H Thorgaard
Terrence H Thorgaard
Answered
  • Freeeport, FL
  • Licensed in Florida

A: If the appraised value turns out to be less than the agreed price, as Mr. Mayoral indicated, you no longer have a contract. As the saying goes, an agreement to agree is not an enforceable agreement.

1 user found this answer helpful

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