Real estate transactions occur every day. For the most part, these go smoothly but it can be a complex process and it is a process that is governed by legal contracts. Once an individual has acquired a property or piece of land, they have the right to enjoy and use that property or land without undue interference.
Sometimes, a breach of contract can occur that either impacts the sale of real estate or affects the owner’s use of their land or property. What types of remedies are available to the courts in these situations?
Monetary damages
When ruling on breach of contract cases, the court must consider the damages done to the affected party. The aim of any remedy is usually to put the impacted party back in a place as if the breach never happened. In some cases, this can mean awarding financial compensation. While this is the most common form of remedy, it is not always practical for the situation at hand, so other types of remedies are available to the courts.
Specific performance
Real estate is often considered unique. Parties may have agreed on the sale of a property, and the seller tries to pull out of the transaction. If both parties have signed the purchase agreement, this could amount to a breach of contract. Awarding the buyer financial compensation may not be deemed satisfactory due to the uniqueness of the property (they may never have the chance to buy something similar). Subsequently, the court can use the specific performance remedy. This is an order instructing the seller to honor the contract and put both parties in the position that they would have been if the breach of contract had never occurred.
Breaches of contracts in real estate can be tricky to navigate. You must find a remedy that removes you from being in a disadvantaged position. Seeking legal guidance is the first step toward finding that remedy.