There is no such thing as a small real estate deal. Any time you are involved in buying, selling or leasing property, there are big dollars and big dreams on the line. With so much at stake, it’s vital that everything goes off without a hitch.
So what happens when there is a problem, and the other party doesn’t hold up their end of the deal?
Breach of contract
Anytime one party in a contractual transaction fails to follow through on the terms of the deal, it is a breach of contract. There are many possible ways for someone to breach a contract. Some common examples in real estate deals include:
- The buyer or seller backing out after the contract has been signed
- The buyer failing to pay
- The seller not divulging all required information
- Either party not delivering on certain terms
- Problems with the delivery of the deed
When things go sideways in this manner, how might the situation be resolved?
Solutions to real estate disputes
Breach of contract is a serious legal matter. In many cases, the offending party may have to pay damages (essentially, financial compensation) to the other person to make up for the breach.
A well-written contract often includes a protocol for resolving issues of a breach. “If the seller does this, then the buyer receives that,” for example. This type of language is not always in the written contract, however. This necessitates a different approach.
Frequently, the disputing parties will negotiate privately in an attempt to end the disagreement. This type of settlement allows both sides to move on from the deal. However, if an agreement cannot be reached, you usually have the option of bringing the matter to court.
Litigation is complicated. It requires some time, effort and good legal support. However, sometimes it is the only way to ensure you get a fair deal – particularly if the other side refuses to be reasonable.