Breach of Contract
In real estate, a breach of contract occurs when one party fails to fulfill their obligations as outlined in a legally binding agreement. This failure to perform can take various forms, such as not completing the sale of a property, not delivering possession of the property by the agreed-upon date, or not adhering to other terms and conditions specified in the contract.
For example, if a seller agrees to sell their house to a buyer for a specified price and then refuses to transfer ownership of the property at the closing date, it would constitute a breach of contract. Similarly, if a buyer agrees to purchase a property but fails to secure financing within the specified timeframe, it would also constitute a breach of contract.
When a breach of contract occurs in a real estate transaction, the non-breaching party may have legal remedies available to them, such as seeking damages for financial losses incurred as a result of the breach or specific performance, where the court orders the breaching party to fulfill their contractual obligations.
It’s important for both buyers and sellers to carefully review and understand the terms of any real estate contract they enter into and to seek legal advice if they believe the other party has breached the agreement. Additionally, including clear provisions for remedies in the event of a breach can help protect the interests of all parties involved in the transaction.