Florida Contract Rescission: Your 3-Day Right & What to Know

Many states provide consumers and businesses with a three day right of rescission during which they can nullify a contractual agreement before it legally takes effect. Under laws in the state of Florida, you are entitled to a right of rescission when you enter into certain kinds of contracts. However, rescission periods vary based on the type of contract, and many contracts in Florida, such as car purchases have no right of rescission period at all.

Contracts

In Florida, a valid contract must involve the exchange of goods, money or services. Florida statutes refer to the exchange of goods or services as the "consideration" and a contract has no legal basis unless it features some form of consideration. Generally, valid contracts in Florida take written form but the state does recognize verbal contracts in certain situations. When two parties reach agreement on the terms of a contract, the state of Florida does not generally provide either party with a right to rescind that agreement.

Federal Law

Federal lending laws that apply to residents of Florida and every other state entitle you to a three-day right of rescission when you refinance a mortgage on your primary residence with a new lender. The right of rescission only pertains to the refinancing of your existing loan and does not cover cash-out refinance loans. If you refinance your home and receive cash back, then the right of rescission only applies to the non-cash-out portion of the loan.

Florida Real Estate Laws

When you buy a condominium in Florida directly from the builder, you are entitled to a 15-day right of rescission, but this rescission period drops to just three days if you buy a condominium from someone other than the developer. If you buy a timeshare in Florida, you are entitled to a 10-day right of rescission. This right of rescission applies regardless of whether you buy the timeshare from the developer or from another party.

Other Contracts

Under Florida law, you have a three-day right of rescission if you enter into a contract with a door-to-door salesperson or buy any goods from him. Other types of purchases and service agreements are not covered by rescission laws.

If you are pregnant and agree to a contract to give your child up for adoption, you are entitled to a 48-hour right of rescission that begins with the birth of your child. The adoption cannot occur until this rescission period has ended.