Florida Broker Practice Exam

What action can a buyer of a residential condo take if they want to cancel their contract according to the Condominium Act?

1. File for reimbursement

2. Deliver a written notice of intent to cancel

3. Negotiate a new contract

4. Request an escrow disbursement order

The correct answer is: Deliver a written notice of intent to cancel

A buyer of a residential condo has the right to cancel their contract by delivering a written notice of intent to cancel, as stipulated by the Condominium Act. This provision is designed to protect buyers by providing them with a clear and formal method to withdraw from the purchase agreement within a specified time frame after signing the contract. This written notice must be delivered to the seller or their representative to ensure that the cancellation is acknowledged and processed appropriately. The law recognizes the importance of allowing buyers to have an option to back out, especially in the context of real estate transactions, which can be significant commitments. In contrast, while options like filing for reimbursement, negotiating a new contract, or requesting an escrow disbursement order may be related to financial or contractual discussions, they do not specifically provide the direct mechanism established by the Condominium Act for a buyer to officially cancel their purchase agreement. The straightforward action of delivering a written notice is what empowers buyers to exercise their rights effectively under the Act.