Florida Construction Contract Termination: When Can You Rescind or End an Agreement?

A construction project can become stressful when the work, timeline, or contractor relationship doesn’t go as planned. If you are wondering whether you can walk away from a signed agreement, it is crucial that you understand Florida’s rules. At Bleakely Bavol Denman & Grace, our Tampa Construction Litigation attorneys help property owners and contractors understand their options when a construction contract becomes difficult to enforce or complete. We are here to help you, too.

Florida’s Right To Rescind

Florida Statutes section 520.72 gives homeowners and contractors a limited right to rescind certain construction and home improvement contracts. For qualifying projects valued at more than $500, the cancellation notice must generally be provided by midnight on the third business day after the contract is signed.

The contractor or home improvement seller must inform the customer about this cancellation right when the agreement is executed. The contract should also identify important details, including the work to be performed, project cost, payment, and completion schedules.

How Do You Rescind a Construction Contract?

If the project qualifies, the cancellation must be handled carefully. The customer must provide written notice of the intent to cancel by the applicable deadline. Notice may be sent electronically, such as by email, fax, or text, and written notice should also be sent by registered mail.

Once the required notice is given, the customer is not responsible for damages and materials associated with the project.

Which Construction Projects Qualify?

The right to rescind does not apply to every construction agreement. Qualifying home improvement work can include repairs, replacements, alterations, additions, conversions, or modernization involving a single-family residence.

Certain home financing arrangements, including home equity loans, HELOCs, mortgage refinances, and reverse mortgages, may also qualify under the law.

What Does Not Qualify?

New home construction and new-home purchase loans are excluded from the right to rescind. New home warranty claims also do not qualify.

Additionally, a contract that was not initially in writing, when the contractor was unlicensed, does not qualify for this rescission process. If a contractor is unlicensed, the contract can be terminated without a formal warning or notice.

Can You Terminate After the Three-Day Period?

The end of the rescission period does not necessarily mean you are permanently stuck with the contract. Other circumstances may provide grounds for termination. For example, failure to complete agreed-upon work, failure to fully complete the project, and fraud are situations that may support ending the agreement.

However, terminating a contract after the rescission period can be complicated and confusing. It is important to get a skilled construction lawyer to help you determine your options if the cancellation period has ended.

Protecting Your Construction Rights

Whether you are a homeowner trying to end a problematic project or a contractor protecting your business, taking action without understanding the law can create problems. Reviewing your situation with a construction litigation attorney can help you understand your rights and options.

Contact BBDG Law

If you need help resolving a Florida construction contract dispute, contact our experienced Tampa construction litigation attorneys at Bleakely Bavol Denman & Grace to discuss your rights, options, and next steps today before making costly decisions about your construction project or business matter.