Knowledge Mondays – Buyer v. Seller Defaults
A default in a real estate purchase contract occurs when a buyer or seller fail to complete a promise in the contract on time or at all. When a buyer and seller enter into a purchase contract, they have obligations that they must meet within a certain time frame. However, a situation might arise where the buyer or seller do not complete the obligation(s). This could delay the closing, harm the buyer or seller, and even cause the sale to not go through.
There are remedies for a buyer and seller when a party breaches the contract. A buyer can breach a purchase contract by not depositing the initial deposit, by not acquiring financing for the property on time, or by backing out of the contract. If a seller is faced with a situation where a buyer breaches the real estate contract, the seller can decide to do nothing, require specific performance from the buyer, or seek damages for the breach. As a seller you may compel the buyer to do what was agreed upon pursuant to the contract that was signed, which means that the buyer must close on the property.
On the other hand, a seller may breach a purchase contract by not providing completed disclosures on time, not providing loan payoff information, or refusing to sign the closing documents. If a buyer is faced with a situation where a seller breaches the real estate contract, the buyer can decide to terminate the contract, force specific performance from the seller, or seek damages for the breach.
It is crucial, that as a buyer and seller you have an understanding of your obligations under the real estate contract. Your obligations can be found in your real estate purchase contract. If you would like to discuss your purchase contract and obligations, schedule a consultation with the experienced attorneys at Alvarez Law Group today. Call us at (786) 620-2820 or email firstname.lastname@example.org to schedule a consultation.
*Disclaimer: this blog post is not intended to be legal advice.