Buying or selling property is one of the most significant financial transactions in a person’s life. It is governed entirely by a legally binding contract. Unfortunately, it is not uncommon for deals to fall apart due to one party failing to uphold their end of the agreement a situation known as a Breach of Contract.
If you are a buyer whose seller suddenly backed out, or a seller whose buyer failed to secure financing, the fallout can be stressful, costly, and legally complex. Knowing your rights is the crucial first step toward protecting your investment.
What Constitutes a Breach of Contract?
A breach occurs when one party fails to perform a material term of the agreement without a valid legal excuse. In real estate, common examples include:
- The Buyer’s Breach: Failing to meet the closing deadline, failing to deposit the required earnest money, or failing to secure the financing specified in the contract.
- The Seller’s Breach: Refusing to vacate the property by the closing date, failing to make necessary repairs stipulated in the contract, or attempting to sell the property to a second buyer (known as a “double closing”).
Your Legal Remedies: What We Can Recover for You
When a breach occurs, the wronged party has several legal remedies. Our firm helps you pursue the option that maximizes your recovery, which typically involves seeking compensation or forcing the sale to proceed.
The Critical Role of the Contract
Your rights and options are entirely determined by the language written in your purchase agreement. This is why having experienced legal counsel review or draft your contract before signing is the best defense against a later dispute.
We thoroughly examine the contract to identify:
- Contingencies: Were all conditions (inspection, financing, appraisal) properly met or waived?
- Liquidated Damages Clause: Does the contract specify the amount of damages (usually the earnest money deposit) if a breach occurs?
- Notice and Cure: Were the proper legal notices given to the breaching party, allowing them an opportunity to fix their failure?
Don’t let a contract dispute put your home ownership goals or property investment at risk. Our attorneys are experienced negotiators and litigators who can efficiently resolve complex real estate disputes, whether through negotiation or aggressive court action.
If your real estate transaction is threatened by a breach of contract, contact us today for an urgent consultation to protect your financial interests.