The Short Answer

In Florida, what happens “next” depends on why the buyer terminated and what your contract requires (for example, whether a written release is needed to return deposits or close out escrow). You may not be legally required to sign something in every situation, but in practice a signed release/settlement document is often used to prevent future disputes and to authorize the escrow agent to disburse funds.

What Florida Law Says

Florida law recognizes certain situations where a buyer can terminate a real estate purchase contract by giving written notice, and the law can impose specific consequences (including refund timing and limits on fees) depending on the reason for termination. The key legal issue is whether the termination was valid under the contract and any applicable statute, and what that means for deposits, deadlines, and each side’s remaining obligations.

The Statute

The primary law governing this issue is Fla. Stat. § 689.27.

This statute establishes that a qualifying servicemember may terminate a contract to purchase certain residential real property before closing by providing written notice (with required military documentation), and it requires a refund of funds paid within 7 days while generally preventing additional termination fees under that statute.

Why You Should Speak with an Attorney

While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: If the termination is under Fla. Stat. § 689.27, the refund timing is specific (funds must be refunded within 7 days), and missing timing requirements can trigger disputes.
• Burden of Proof: Whether the buyer’s termination is effective can turn on the content and delivery of the written notice and whether required supporting documentation (such as military orders or command verification) was provided.
• Exceptions: Many terminations are not based on § 689.27 at all and instead depend on contract contingencies (financing, inspection, appraisal, title, HOA/condo documents) and escrow rules—often requiring a release to avoid competing demands for the deposit.

Trying to handle this alone can lead to missteps—like signing a release that waives claims you didn’t intend to waive, or delaying escrow disbursement and escalating the conflict.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.