Paragraph 15 · Default
Default is more than a deal falling apart. It is an alleged failure to perform a contractual obligation—and the remedies can be very different depending on whether the buyer or seller is accused of the breach.
A buyer or seller may sometimes have a contractual right to cancel. When that right is exercised correctly and on time, the cancellation is not automatically a default. A default generally involves failing, neglecting or refusing to perform an obligation after considering the contract, its riders, notices and deadlines.
That distinction matters. A party’s rights can depend on exactly what happened, when it happened, what notice was delivered and which protections were still available under the contract.
Paragraph 15(a) addresses a buyer who fails, neglects or refuses to perform an obligation within the required time, including the obligation to pay the deposit.
Depending on the facts and the contract, the seller may have an election between remedies described in Paragraph 15:
Paragraph 15(b) addresses a seller who fails, neglects or refuses to perform a contractual obligation, subject to the contract’s separate treatment of certain marketable-title circumstances.
Depending on the facts, the buyer may elect to receive the deposit back without automatically waiving a claim for damages and may proceed under Paragraph 16 to:
A common misconception
Even when one party believes the other has defaulted, escrowed funds may remain disputed. The escrow agent generally needs appropriate written authorization, an applicable escrow-dispute process or a binding legal determination before releasing funds.
The seller’s potential remedy under Paragraph 15 and the escrow agent’s authority to disburse money are related—but they are not the same question.
Another important distinction: financing trouble, an inspection cancellation or another problem does not automatically establish default. The answer depends on the protections, conditions, notices and deadlines contained in that specific contract.
Before declaring default
Default can affect deposits, damages and the ability to compel performance. These are practical first steps—not a substitute for legal advice.
Review the contract, riders, addenda and amendments together.
Confirm the date, time-counting rules and any extensions.
Keep notices, emails, receipts and delivery confirmations.
Contact the brokers and the title or escrow professional promptly.
Have a Florida real estate attorney evaluate rights and remedies.
Continue the series
Understand the contract’s pathway from conflicting demands to mediation and, when necessary, court.
Read Paragraph 16 → Paragraph 17Learn how mediation fees, each party’s expenses and prevailing-party litigation costs are addressed.
Read Paragraph 17 →
When a contract question requires legal advice
Some disagreements cannot be resolved through brokerage guidance alone. Questions involving contract interpretation, default, escrow disputes, mediation, litigation, HOA matters or estate planning should be reviewed by a qualified Florida attorney.
DW&Co. Real Estate has developed a trusted working relationship with BCN Law Firm in Clermont, including Wade Boyette, Ken Costello and Heath Nailos. BCN assists Central Florida clients across a range of legal matters, including real estate, civil disputes, HOA concerns, estate planning, wills and trusts.
BCN Law Firm is an independent law firm. DW&Co. Real Estate has no ownership interest, referral-fee arrangement or other financial incentive connected to this recommendation. Consumers are free to select any attorney or law firm of their choosing. DW&Co. Real Estate does not provide legal advice.
