Breach of Real Estate Contract

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What's a Breach of Real Estate Contract?

A breach of real estate contract may occur when the terms and conditions of a real estate contract are not followed. Real estate contracts can cover many different real estate issues, but they usually deal with a sales transaction. The contracts can also cover:

Contracts for the sale of real estate need to be in writing in order to be valid. However, it’s a good idea for any type of real estate contract to be in writing, so that the parties have a record of the transaction in the event of a breach.

What Are Terms and Conditions of Real Estate Contract?

A real estate purchase agreement contains many terms and conditions. If either party breaches the terms and conditions stated in the contact, the other party may have a legal claim against the breaching party. Conditions in a real estate agreement usually include:

If a party fails to comply with a term or condition that was agreed in the real estate contract, the parties must try to resolve the dispute through a dispute resolution process if one is included in the contract. If it determined that a party has failed to comply to the terms and condition which resulted in a breach of contract, the non-breaching party can collect damages from the breaching party

What Are Some Ways That a Breach of Real Estate Contract Can Occur?

Breaches: A breach of real estate contract can occur in many different ways. Some common forms of breach of a real estate contract may include:

A breach of contract can happen on either side of the agreement. For instance, the seller may be liable for breach if they deliver a defective title. Or, the buyer may be in breach if they don’t supply their payment on the promised date.

Contingencies: Some real estate contracts or purchase agreements also contain many contingencies that must be met before the sale to continue. Some typical contingencies for a real estate contract include:

If the contingencies of the sale are not met, then it would not result in a breach of contract and either party can withdraw from the original agreement without paying a penalty. For example, if the buyer does not get the proper mortgage or financing that he wants, the contingency has not been met and the buyer can withdraw his offer and get a refund of any deposit he has made without being in breach of contract.

Are There Any Legal Remedies for a Breach of Real Estate Contract?

Remedies for a breach of a real estate contract will depend on the nature of the breach. In most instances, a damages award will be sufficient to cover the losses caused by the breach. For instance, a damages award might be required from the buyer to ensure that the seller receives missed payment amounts. In other cases, a different remedy might be needed, such as requiring the seller to deliver the deed to the purchaser.

Breach of real estate contracts can also be resolved through a dispute resolution process if the provision was contained within the contract. Many times buyers and sellers agree that if a type of dispute were to arise, they would take the dispute through a dispute resolution process. This process can include:

Do I Need a Real Estate Lawyer?

Breaches of real estate contracts can sometimes lead to significant losses for either party. You may need to hire a real estate lawyer if you need assistance filing a claim for a breach of real estate contract. Your attorney can provide you with the legal expertise and guidance that is needed to protect your interests. Also, your lawyer can represent you during court proceedings and other meetings.

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Last Modified: 07-21-2015 03:23 PM PDT

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