It is common to have a contract when dealing with a large purchase such as a real estate transaction. These purchases involve substantial sums of money and often require certain conditions be met by each of the parties. As such, a contract helps to clearly outline all of these terms and protect both the buyer and the seller in these transactions. It is important to fully understand the terms of your real estate contract and what remedies may be available if either party breaches this contract.
The most common type of real estate contract is a purchase agreement. The essential terms of these types of contracts often include, the purchase price, a good-faith deposit, address and description of property, funding for purchase, items included and items excluded from the sale, which party is responsible for taxes and other expense, as well as dates for completion. The parties may include any additional terms they deem necessary, and the essential contract terms may differ from state to state.
All real estate purchase contracts must be signed by both parties, buyer and seller. Once there is a signed contract, if either party breaches their terms of the contract, the other party may have certain remedies available to address the breach. There are a variety of ways a party may be in breach of contract, such as failing to pay on time or failing to properly deliver title.
If the seller is the party in breach, the buyer may have several remedies available, including, suing the seller for damages or specific performance, terminating the contract and requesting return of all deposits and payment for reasonable expense. Where the buyer is the breaching party, the seller may terminate the contract and retain the deposits, or sue for damages or specific performance of the agreement.
An experienced attorney can assist with any property disputes, and it is essential to consult with a real estate attorney to ensure to assist in drafting and enforcing any real estate contracts.
Source: Legalmatch.com, “What’s a Breach of Real Estate Contract?,” accessed Jan. 9, 2018