When you enter into a real estate contract, you expect all parties to uphold their agreements. However, breaches can occur, so your Silver Spring, MD real estate litigation lawyer can help you find your next steps. At Eric Siegel Law, we have over 30 years of legal experience, and we’ve been involved in business and real estate for over a decade. Now, we’re using our knowledge and background to help you deal with breaches of contract.
What Constitutes A Breach Of Real Estate Contract?
A breach happens when one party fails to fulfill their obligations as outlined in the contract. This could be a seller not completing agreed-upon repairs before closing, a buyer not securing financing in the agreed timeframe, or either party failing to meet deadlines for inspections and contingencies. Identifying a breach involves reviewing the contract to determine if the obligations were clearly defined and whether they have been neglected or outright ignored.
Steps To Take After A Breach Occurs
The first step in addressing a breach is to communicate with the other party. A clear discussion might resolve the issue if it was due to a misunderstanding or minor oversight. If this approach doesn’t work, you might need to consider more formal actions:
Review the Contract: Look over the agreement to understand the specifics of what was breached. The contract may also outline steps or remedies in case of a breach.
Gather Evidence: Compile all communications, documents, receipts, and other relevant evidence that support your claim of a breach. This evidence is crucial if legal action becomes necessary.
Legal Notice: Sending a formal notice often gets the attention of the breaching party. This notice should clearly state the breach and the actions required to rectify it, as well as a deadline for correcting the issue.
Seek Mediation: Sometimes, mediation can be a viable option to resolve disputes without going to court. It involves a neutral third party who helps both sides reach an agreement. This can be a less adversarial and costly way to resolve disputes.
Legal Action: If other remedies fail or are inappropriate, it may be necessary to file a lawsuit. Legal action can enforce the contract or seek compensation for losses incurred due to the breach.
Legal Remedies For Breach Of Real Estate Contracts
The remedies available typically depend on the nature of the breach and the specifics of the contract. Common remedies include:
Damages: Financial compensation for losses suffered due to the breach.
Specific Performance: A court order requiring the breaching party to fulfill their obligations under the contract.
Rescission: The contract is canceled, and both parties are restored to their original positions, as if the contract had never been signed.
Preventing Breaches In Real Estate Contracts
Prevention is always preferable to litigation. When you make sure that all terms are clear and attainable (and all parties understand their obligations), you can reduce the risk of breaches. Working with a knowledgeable legal team during the drafting and negotiation of real estate contracts can help safeguard your interests and minimize potential disputes.
We Are Here To Help
Handling breaches of real estate contracts can be complex and challenging. If you find yourself facing this situation, remember you don’t have to deal with it by yourself. The team at Eric Siegel Law is equipped to advise and support you through each step of the process. Contact us today to discuss your case.