Have you ever purchased property? If you have – you understand that the time between an accepted offer and your closing date can be very stressful. A breach of contract can quickly derail the sale and there are a lot of ins and outs to the real estate litigation process that you need to be aware of. Potential real estate buyers and sellers in the Golden State may want to know – what is a real estate breach of contract in California – and we can help answer your questions at RJZ Law Group in Los Angeles County.
Did you know that in California a real estate contract must be in writing? When both the buyer and seller sign the contract – it is a legal and binding document – and both parties are agreeing to all terms laid out in the contract. When an element of this contract is violated by either party, it is considered a breach of contract. It is important that you understand the ins and outs of your real estate agreement and RJZ Law Group can help you navigate the legal real estate process.
What Are the Different Types of Real Estate Contract Breach?
When there is a breach of contract – there are ways to fix the situation and continue the sale – but it depends on the type of contract breach. There are two basic types of real estate contract breach – material and non-material. A material breach of contract indicates that a party named in the contract failed to satisfy their obligations to the point that the wronged party is owed a remedy. A non-material breach of contract is more minor and occurs when a party named in the contract failed to fulfill their contractual obligations and the non-breaching party may be owed compensation if they can show that they were affected by the breach of contract.
How To Remedy a Real Estate Breach of Contract?
Whether you are the buyer or seller in a real estate dispute where there has been a breach of contract, the breach of contract can be remedied and you can complete the sale. How the issue is resolved in your case will depend on your role in the sale and RJZ Law Group can help.
Sellers who are faced with a breach of contract by the buyer are most often faced with a buyer failing to close on the pre-selected date and not paying for or taking possession of the property as stated in the contract. The seller – in most cases – is entitled to monetary damages and compensation in this case, which will be determined by the difference between the agreed upon sale price and the fair market value of the property.
A seller may be found in breach of contract if they refuse to close on the property due to a higher offer or another issue that prevents the sale. When this occurs, the buyer may be entitled to monetary compensation that includes the price paid, title fees and escrow expenses. The RJZ Law Group can help you as the buyer or the seller to remedy a breach of contract.
READ MORE: What Is a Real Estate Transaction in California?
What is a real estate breach of contract in California? Learn more about the different types of contract breach and how they can be remedied with this quick breakdown created by the RJZ Law Group in Los Angeles County. Contact us today for a FREE consultation on real estate litigation, estate planning and more!