Breach of Real Estate Contract Remedies

Real estate breaches of contract can occur no matter who you are. What is most important when a breach of contract occurs is to be educated on the remedies that are on hand to correct them. Enclosed is information pertaining to breach of contract in real estate and a brief overview of the remedies that can be used.

Signifigance

Real estate contracts are legally enforceable when executed. Should either party fail to perform and not abide by the contract, they are in breach (default) and can be liable for further action.

Types

Real estate breaches of contract can occur when any changes to the contract are not communicated and agreed upon by both parties in writing. Most breach of contract suits arise over verbal agreements.

Time Frame

As with any other area of the law, real estate breach of contracts have a statute of limitation. In most states, this statute is four years.

Actions

If a breach of contract happens in your transaction, it is imperative that you contact a real estate attorney. A general attorney does not have the specific knowledge needed to assist in properly handling your case.

Compenstation

If a court finds in your favor, you may be entitled to punitive damages, liquidated damages as well as attorney's fees. If, however, you are found at fault, you could be held liable to pay these fees.

Mediation

Most real estate contracts disputes can be handled by mediation. If this is done, typically the mediator will order a rescission, meaning that each party is released from the contract and no damages will be assessed.