Overview:
Breaches in real estate contracts can be complex and require strategic interventions. At Oppenheim Law we understand like the back of our hand the remedies that can be sought in residential transactions based on which party defaults – be it the seller or the buyer. With experience in closing over $3.5 billion in real estate transactions, Oppenheim Law provides informed insights into these scenarios.
Seller’s Default: Breach Of Real Estate Contract By Seller
Return of Deposit: One primary remedy for the buyer when a seller defaults is the return of their initial deposit.
Compensation: In some cases, the buyer can seek additional compensation due to the inconvenience caused by the default.
Specific Performance: In scenarios where the buyer is adamant about purchasing a specific property and where they believe they steadfastly they have a valid contract, they might opt to sue the seller for specific performance. This legal move can force the seller to proceed with the sale and prevent them from selling to another party.
Buyer’s Default: Breach Of Real Estate Contract By Buyer
Reason for Default: One has to ascertain the reason for the buyer’s default. If the default occurs due to an inability to secure a mortgage outside the allowed timeframe, it is treated as a genuine default.
Retention of Deposit: A common remedy in cases of buyer default is the retention of the deposit by the seller.
Ensuring Sincerity with Substantial Deposits: It’s crucial for sellers to demand a significant deposit, especially in high-value transactions. This step ensures that the buyer is committed to closing the deal.
Practical Advice:
Avoid taking minimal deposits in high-value transactions. For instance, a mere $5,000 deposit on a million-dollar property might not be adequate. It’s more prudent to demand 5 to 10% or even more as a deposit, reinforcing the buyer’s intent to finalize the transaction.
In Conclusion:
Real estate breaches demand a nuanced approach, factoring in the roles and defaults of both buyers and sellers. With Oppenheim Law’s vast experience in the real estate domain, clients can rely on strategic counsel and representation in these complex matters.