A real estate contract breach can occur when a party fails to follow the terms and conditions of the contract. These may cover issues such as property usage, landlord/tenant agreements, leases and subletting, residential development and boundaries, but most focus on sales transactions. Verbal contracts are binding in many cases, but real estate contracts should be in writing because of the money involved.
What Are a Contract’s Terms and Conditions?
Purchase agreements contain a variety of conditions and terms. If the terms are breached by either party, the other person and their Real Estate Attorney in Walker MN may be able to file a claim against the party performing the breach. Conditions often include:
• Purchase price
• Closing date
• The date the buyer will move in or take possession of the property
• Items included in a sale
• Items not included
• A description of the property to be sold
• An agreement that the seller will offer a clear title to the property
• Agreements as to which party will pay certain expenses
If either party does not comply with the contract’s terms and conditions, the parties may attempt to resolve the issue through dispute resolution processes as specified in the contract. The other party may be able to collect damages from the party performing the breach.
How Breaches Can Occur
A real estate contract breach may occur in multiple ways: failure to make timely payments, failure to deliver a deed correctly, and unauthorized subletting. Contesting contract penalty clauses can be seen as a breach, as can issues of habitability. Contract breaches can occur on either side of a real estate agreement.
Legal Remedies in Contract Breach Cases
The legal remedy for a contract breach depends on the type of issue being experienced. In most cases, damages are sufficient to cover losses related to the breach. Sometimes, damages may be required to ensure that a seller receives payments that were missed, and other times, the seller may be required to deliver the property deed to the buyer.
Real estate contract breaches can result in losses to parties on both sides. If a person needs help filing a claim related to a contract breach, they should call a real estate attorney in Walker, MN immediately. A lawyer with Brainerd Law can provide a client with legal guidance that will protect the client’s interests in and out of court.