Litigating Real Estate Contract Breaches

Contracts form the foundation of real estate transactions. They ensure that the buyers and sellers understand and fulfill their responsibilities. Nonetheless, even with careful drafting, disagreements can still occur if a party breaches the agreement. A thorough understanding of the law, damages, and the aggrieved party's remedies is necessary when deciding whether to file a breach of contract lawsuit. Due to the rapid changes in property values and market conditions, these disputes can have a significant financial impact.

Elements of a Breach

To establish a breach of a real estate contract, the plaintiff must prove several elements:

• There must be a valid, enforceable contract that clearly defines the obligations of the parties.
• Evidence must demonstrate that the defendant failed to perform as required by the contract.
• The plaintiff must prove the damages caused by the defendant’s breach of the contract.

These lawsuits depend on documentation, including signed agreements, correspondence, and records of performance.

Calculating Damages

The primary goal of any award of damages is to restore the harmed party to the status they would have had in the absence of the breach. This may include direct monetary losses like deposits, inspection fees, or appraisal costs.

Punitive damages are uncommon in real estate disputes. Additionally, plaintiffs are sometimes required to take reasonable measures to minimize their financial losses, which is known as a mitigation of damages.

Effective Remedies

In addition to monetary damages, courts may impose equitable remedies. One common remedy is specific performance, which compels the breaching party to complete the transaction as originally agreed.

Rescission, on the other hand, permits both parties to terminate the agreement. Often, the best course of action is a negotiated settlement, which saves time and legal fees.

In order to make sure that the remedy selected fits with both long-term interests and financial objectives, knowledgeable legal counsel can assist clients in weighing their options.

Experienced Litigation Attorneys You Trust

Our civil litigation attorneys specialize in representing parties involved in real estate contract breaches. Whether you are the plaintiff or defendant, the experienced legal team at Bingaman Hess will provide knowledgeable guidance while offering all the options to help you achieve the desired outcome.

Contact us today at 610.374.8377 or find us online.

This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.