Cancelling a Florida Real Estate Contract: A Release and Deposit Checklist

Published October 9, 2026 · Recalde & Friedman, PLLC

Two different steps

Ending a contract usually takes two steps that people often blur together:

1. Termination. One party exercises a contract right to cancel, or both parties agree to end the contract.
2. Release and disbursement. The parties sign a document that releases each other and tells the escrow agent who gets the deposit.

A valid termination notice doesn't by itself move the deposit. Escrow agents disburse according to the contract terms or the parties' joint instructions. When demands conflict, they may hold the funds or use the dispute procedures in Paragraph 13 of the Florida Realtors/Florida Bar AS IS contract. See escrow deposit disputes.

Checklist: before sending a termination notice

• Identify the right. Which paragraph gives the right to cancel? Common ones include the inspection period (12(a)), financing (8(b)(iv)), condominium approval (Condominium Rider, paragraph 1), condo document review (§ 718.503, Fla. Stat.(2)), leases (6(b)), flood zone (10(d)), title (Standard A), casualty (Standard M) and force majeure (Standard G).
• Check the deadline. Count days the way the contract says. See counting deadlines.
• Check conditions. Some rights require that the party not be in default. The financing termination in 8(b)(iv), for example, also requires good faith and diligent effort.
• Use the right method. Notices must be in writing and may be made by mail, fax, personal delivery or email. Notice to or from a party's attorney or broker counts as notice to or from the party (Standard O).
• Keep proof of when and how it was sent.

Checklist: the release

A release and cancellation agreement is usually short, but it matters. Confirm that it:

• names the correct parties, property and contract date, including all amendments and addenda;
• states exactly how the deposit is to be disbursed, in amounts or percentages, and to whom;
• addresses any additional deposit that was due but not paid;
• says whether either side is reimbursed for costs, such as inspections or association application fees;
• includes a mutual release of claims, and says whether the brokers and escrow agent are released too;
• handles any items that survive termination, such as the buyer's duty to repair inspection damage and pay inspectors (12(a));
• is signed by everyone who signed the contract, including both spouses or every co-buyer, and, for an entity, someone with authority.

Electronic signatures are fine

Florida law gives electronic signatures and records the same legal effect as paper ones (§ 668.50, Fla. Stat.(7)), and the FR/BAR contract allows electronic execution (Standard O). What matters is that the signer is the right person and the document is complete.

Don't sign a release you don't agree with

A release generally ends claims, including claims for damages or specific performance. If you believe the other side defaulted, get advice before signing. And remember that modifications and agreements to end a contract should be in writing and signed (Standard P).

Hypothetical

A buyer cancels during the inspection period by an email to the listing agent. The seller's agent replies, "Received, please send the release." The buyer signs a release that the seller never signs. Weeks later the deposit is still in escrow. The fix is simple but needs every signature. Until the escrow agent has a fully signed release or another basis under the contract, it may continue to hold the funds.

After the release

• The escrow agent disburses after funds are collected and the release is complete. Ask for the expected timing.
• Buyers: provide paid receipts for inspection work if the contract requires it.
• Sellers: if the property goes back on the market, update the listing status promptly.

Special cases

• Condo resale cancellations. A buyer who cancels within the statutory review period under § 718.503, Fla. Stat. doesn't need the seller's agreement. A broker holding the deposit may return it without going through the FREC dispute procedures (§ 475.25, Fla. Stat.(1)(d)1).
• Financing failures. The same statute lets a broker return the deposit when a buyer in good faith fails to satisfy the contract's financing terms.
• Entity parties. If a buyer or seller is an LLC or corporation, the release should be signed by someone with authority, in the entity's name.

Common mistakes

• Sending the termination notice only by text message, or only to the closing agent.
• Signing a release that doesn't mention a second, unpaid deposit.
• Forgetting a co-buyer's signature.
• Agreeing to a split on the phone without putting it in the release.

Frequently asked questions