What Can I Do if a Real Estate Contract is Breached?

Real estate transactions often represent significant financial and personal investments. Whether you’re buying your dream home, selling a property or entering into a rental agreement, contracts oversee that all parties fulfill their obligations. But what happens if someone breaches that agreement? A breach can disrupt plans, incur financial losses or even risk the loss of the property. Understanding your rights and potential remedies is crucial when faced with such a situation. At the Van Den Heuvel Law Office, we guide clients through the legal complexities of real estate contract breaches and help them pursue the best possible outcome.

Legal Remedies for Breach of a Real Estate Contract

When a real estate contract is breached, the appropriate legal remedy will often depend on the type and severity of the breach. Below, we outline some key options available to protect your interests.

Financial Reparations

Monetary damages are the most common remedy, especially when the breach directly results in financial loss. For example, if a buyer backs out of a property purchase, the seller could seek damages that cover the difference between the contracted price and the property’s market value. Other reimbursable damages might include costs like inspection fees, legal expenses or lost rent opportunities in rental agreement disputes.

The amount varies depending on jurisdiction, as the courts aim to place the non-breaching party in the financial position they would have been in if the contract had not been violated.

Specific Performance

Sometimes, money isn’t enough to resolve the issue, particularly when the property is unique or too valuable to simply replace. In these cases, you might petition for “specific performance.” This remedy requires the breaching party to fulfill their contractual obligations. For example, if a seller refuses to transfer title after a sale agreement, specific performance could force them to complete the transaction.

Specific performance is often an option when the property itself has characteristics that make financial compensation inadequate. However, it may not apply in every case, so understanding the circumstances is important.

Liquidated Damages

Certain contracts include clauses for liquidated damages. This predetermined amount is agreed upon in advance as compensation in the event of a breach. For instance, a buyer’s deposit on a property might serve as liquidated damages if they fail to proceed with the agreement. Though convenient, these clauses are not always enforceable if deemed excessive or punitive by the courts.

Contract Termination and Refund

Sometimes, the best solution is simply to terminate the contract altogether. Termination allows both parties to walk away from the agreement, though the non-breaching party is typically reimbursed for any deposits or expenses incurred as part of the transaction. For example, if the property fails inspection and the contract terms allow for cancellation, you may recover your losses and move forward without further legal disputes.

Seek Legal Guidance from the Van Den Heuvel Law Office

Dealing with a breach of a real estate contract can be stressful and confusing, especially without guidance. At the Van Den Heuvel Law Office, we understand the stakes involved and are committed to helping our clients safeguard their rights. Whether you’re pursuing monetary damages, specific performance or seeking to terminate a problematic contract, our experienced attorneys will work tirelessly to find a solution tailored to your specific circumstances.

If you’ve experienced a breach of contract, contact us today. Schedule a consultation with our knowledgeable team to explore your legal options and protect your investment.