The process of selling your home or business can be long and strenuous. Once you find a buyer that meets your needs, you enter into a contract and you assume that everything will be fine. Unfortunately, sometimes a buyer backs out of a contract. When that happens, it is important to know your legal options and what you should do to resolve the situation. At Moen Sheehan Meyer, Ltd, we provide a wide range of services including real estate contract litigation.
What is a Breach of Contract?
A real estate deal is a legal contract that addresses the issues of buying and selling a property. The contract is legally binding; both parties have obligations and responsibilities for how to handle the transaction. If either party fails to adhere to the terms of the contract, they may have breached the contract. The contract itself may provide insight for suitable ways to address the breach. It is critical to include options for resolving a breach in the original document. However, when either party fails to abide by the terms of the agreement, there are some actions you can and should take.
Resolving Breach of Contract Issues
One of the first things you can do is try to prevent a complete breach of the contract is to talk to the other party. Discuss the issues that are in dispute and try to come to a resolution. In many instances, it is in your best interest to try to come to a meeting of the minds before you need to take further action. You might be able to retain the buyer and save some of additional expenses by providing some incentives or by renegotiating to resolve the dispute. It is best to discuss the situation with an experienced real estate litigation attorney. Together you can weigh your options and decide the best way to proceed.
Regardless of the situation, it is your responsibility to mitigate your damages. In other words, you cannot simply sit back and continue to accumulate expenses rather than taking steps to stop your monetary losses. When the other party breached the contract for no legitimate reason, you are likely entitled to keep the deposit on the property. The deposit is the money the other party put down to hold the property and to prevent you from continuing your efforts to sell it. You will need to prove that the other party did not have a legitimate legal reason for canceling the contract and as a result you lost money. The document itself is the best place to start when you try to determine breach of contract issues. It is always a good idea to have the contract written and reviewed by a skilled contracts attorney. The contract should provide protection for you as a seller and include ways to resolve conflicts and breaches if they arise.
To learn more and to obtain real estate litigation help, contact Moen Sheehan Meyer, Ltd. online or by phone at (608) 784-8310 for an initial consultation.