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Ways to Enforce Real Estate Contracts

Buyers and sellers enter into real estate contracts when the former make offers with adequate consideration and the latter accept them. The contracts are legally binding and are enforceable under the law. Hence, there's a breach of the contract if one party doesn't fulfill its obligations.

Ways a Breach of Real Estate Agreement Can Happen

Parties can breach real estate agreements in these ways:

● A buyer doesn't get adequate financing before the transaction's closing date.

● A buyer doesn't sell their house before closing on the new property.

● The seller reneges on closing after signing the real estate contract.

● A buyer doesn't pay on time.

● The seller tries to modify contractual terms after an initial agreement.

There may also be material and non-material breaches. A material breach involves the breaching party's failure to act or actions substantially affecting the non-breaching party, denying them what they had bargained for in the arrangement. Meanwhile, a non-material happens when a real estate party violates minor or tangential terms of the real estate contract.

A material breach can also lead to termination, while a non-material breach often results in financial compensation or seeking specific performance.

Remedies for Breaches of Real Estate Contracts

A seller can seek these remedies if the buyer breaches the real estate contract:

● Keep the earnest money and terminate the contract.

● Bring an action against the buyer for specific performance.

● Sue for violation of the real estate contract.

A buyer can seek these remedies if the seller violates the real estate contract's terms:

● Seek financial compensation for the violation of the contract.

● Terminate the agreement as well as request the seller to return the deposit money.

● Pursue specific performance (forcing the seller to complete the transaction)

Legal Assistance for Breach of Real Estate Contracts

The Law Office of Andre Clark can help you if someone breaches a real estate contract. We are a professional and affordable law firm offering reliable legal services to clients across California. Our experienced attorneys can study your real estate contract, examine the other party's violations, as well as recommend the best course of action. Please book your free consultation to enjoy our satisfactory legal services.


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