In both commercial and residential sales transactions, buyers and sellers will want to make sure all required legal documents have been properly executed and processed. If someone fails in his or her obligations regarding contractual agreements, the other party may want to nix the deal. A real estate dispute has arisen in another state where a buyer has accused the seller of breach of contract, among other issues.
The central focus of the dispute is a multi-level, mixed use commercial property. The buyer, who is a successful local realtor, said she was thrilled when the seller told her that the bottom two units in the building were being converted to residential units, pending the required municipal permit. The events that have unfolded since then have landed buyer and seller against each other in court.
The buyer had put a $50k deposit down on the property
In her lawsuit against the seller of the mixed-use property, the plaintiff (and buyer) has asked the court to order a refund of her purchase deposit. She stated that she was thrilled to learn of the plans for first floor apartments because she is familiar with local commerce and knows that ground floor commercial units do not do well in that location. However, the buyer told the court that she later learned the required permit to convert the properties was never obtained; therefore, she wants to back out of the purchase deal and also wants her $50k back.
Who is responsible for due diligence in a real estate transaction?
When a cross-examining attorney asked the plaintiff whether she had taken any steps to make sure the proper permits were issued before agreeing to purchase the property, she claimed that it is the seller who is responsible for due diligence regarding such issues, not the buyer. It may take some time for the court to make its decision in this real estate dispute. Anyone in Florida facing similar legal problems in real estate may want to request a meeting with an experienced real estate law attorney before heading to court.