As many of you know, the local real estate market is continuing to pick up momentum and we have seen a welcomed increase in local development and sales. With that, it is important to remember a fundamental basic regarding Florida law.
Everyone knows that a contract for the sale of real property in Florida must be in writing. This is a basic principal in Florida law established by the Statue of Frauds. However, we are often presented with questions regarding the enforceability of oral agreements entered into between parties after the contract was executed. For example, is an oral agreement between the buyer and seller to extend the due diligence period enforceable?
This issue was recently addressed by the Florida Supreme Court in the case of DK Arena, Inc. v. EB Acquisitions I, LLC, 112 So. 3d 85 (Fla. 2013). Simply put, the Court was presented with the question of whether a later oral agreement between the parties can override the requirements of an executed contract. The Court held that the oral promise entered into between the parties to extend the due diligence period was not enforceable.
In light of the Florida Supreme Court’s decision, it is imperative to remember that the terms of the original contract remain in full force and effect until those terms are amended in a writing signed by both parties.
As always, should you have any questions in regards to the foregoing, please consult with your local real estate attorney.
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
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