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What you should know about canceling a building contract

Before a person signs a contract with a builder in Florida, it is essential to review all the terms carefully, as these are binding. However, although breach of contract is illegal, there are certain circumstances where it may be possible to cancel the contract. For example, the Florida Bar Association explains that there are some types of contracts that automatically allow a three-day cancellation option in the event of a contract dispute. These may not apply to a building contract, though, as they typically are for real estate purchases or services that are expected to be ongoing.

Often, a contract may include rights of revocation that allow either party to terminate the agreement within a specified period. According to the Houston Chronicle, it is common to add provisions to a building contract to fulfill this purpose, but there are generally consequences such as fines or other penalties for taking advantage of them.

The builder may be responsible for breaching the contract if the terms have not been fulfilled satisfactorily, but the other party may have to show that there are defects or missed deadlines. Even in these circumstances, the contractor frequently has the right to correct any issues before the contract can be terminated.

In determining whether it is worth it financially to end the contract, a person should evaluate how much of the work has already been completed and what the costs associated with those services and the materials will be. Other expenses may include the cost of hiring an attorney and court costs if the situation ends in litigation. 

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