A new trend is emerging in this red hot market -- sellers backing out of executed contracts because their property has sky rocketed in value between contract execution and the closing.
This issue has become widespread and in particular with pre-construction condos as the time interval between contract execution and closing is usually rather lengthy. Condo developers are now often not providing a final price at the time the deposit is made by the customer on the pre-construction unit.
I experienced a seller trying to back out of a contract for a waterfront lot in Cape Coral. This sale was delayed for several months due to a probate issue and during the period of the delay, the value of the lot increased significantly. After the probate issue was resolved, the seller refused to sign the closing documents. I hired a lawyer who filed a lis pendens with Lee County which is a notice on the public record of legal action on the property. We also served the seller and soon afterwards the seller agreed to sign the closing documents and close the transaction.
I would advise anyone that encounters a seller trying to back out of a contract to seek an attorney that specializes in real estate law.
Deals turn raw in real estate [News-Press]