A Florida court has ruled in favor of Steven and Selena Hitchens, allowing them to enforce their right to purchase a condominium from Tom and Kay Murrell. The decision, made by the Fifth District Court of Appeal on July 10, 2026, reverses a lower court's judgment that denied the Hitchens' request for specific performance of the sale contract. This ruling affects the Hitchens and sets important legal precedents regarding rights of first refusal in condominium sales.
The dispute centers around the sale of a unit at the Las Palmas Condominium Apartments in Cocoa Beach, Florida. The Hitchens had exercised their right of first refusal to purchase the unit after the Murrells initially agreed to sell it to another buyer, Betty Farr. The court's decision emphasizes the importance of following the proper procedures outlined in the condominium's governing documents.
The parties involved in this case are Steven and Selena Hitchens, the appellants, and Tom and Kay Murrell, along with the Palma Condominium Association, Inc., the appellees. The Murrells wanted to sell their condominium to their friend, Betty Farr, at a price below market value. However, the condominium's Declaration of Condominium required that existing owners, like the Hitchens, be given the first opportunity to purchase any unit being sold.
The process for exercising this right is clearly outlined in the Declaration, which states that owners must notify the condominium association's board in writing of their intent to sell, and that notice must be posted at the property. The Hitchens followed these steps and sent their notice via certified mail, but the Murrells refused to sell the unit to them, insisting they preferred to sell to Farr instead.
The Hitchens then filed a complaint seeking declaratory relief, specific performance, and breach of contract claims against the Murrells. The lower court ruled in favor of the Murrells, stating that the Hitchens had not proven that the Murrells received their notice of intent to purchase and that they failed to pay the required deposit on time. The Hitchens appealed this decision.
The Fifth District Court of Appeal, with Judge Soud presiding, found that the trial court erred in its judgment. The court ruled that the Hitchens had properly exercised their right of first refusal by sending the notice via certified mail, which was effective upon mailing, as stated in the condominium's Declaration. The court noted, "the plain language of the Declaration and the dictates of Florida law support the Hitchens’ arguments and require reversal."
Additionally, the court addressed the issue of the $5,000 deposit. The Murrells had not specifically pleaded the Hitchens' failure to pay this deposit in their defense, which the court ruled meant they waived this argument. The court concluded that the Murrells' actions after the Hitchens exercised their right of first refusal amounted to anticipatory repudiation of the contract. This means that the Hitchens were no longer obligated to pay the deposit due to the Murrells' refusal to proceed with the sale.
The court's ruling has significant implications for future condominium sales and the enforcement of rights of first refusal. It reinforces the idea that condominium associations must adhere to the rules set forth in their governing documents. The decision also clarifies that a right of first refusal can become an irrevocable option once a seller enters into a contract with a third party.
Moving forward, this ruling may impact how condominium sales are conducted in Florida, particularly regarding the rights of existing owners. It emphasizes the importance of following proper procedures and the consequences of failing to do so. The Hitchens' victory not only allows them to proceed with the purchase of the Murrells' condominium but also sets a precedent for similar cases in the future.
As for what’s next, the Murrells may seek to appeal this decision to the Florida Supreme Court. However, details regarding any potential appeal were not available in the court filing. The case highlights the complexities of real estate transactions and the importance of understanding one’s rights within condominium associations.