Common Real Estate Transaction and Contract Disputes
Breach of Purchase and Sale Agreements
Real estate purchase agreements establish obligations for buyers and sellers. Disputes can arise when either party fails to perform, refuses to complete the transaction, or disagrees about contractual terms. Determining whether a breach occurred requires reviewing the agreement, relevant communications, and the parties' actions.
Seller and Buyer Defaults
A seller may refuse to close a transaction or fail to meet contractual requirements. A buyer may fail to secure financing, make required payments, or complete the purchase. Whether those actions constitute a breach depends on the contract, applicable contingencies, and the surrounding circumstances.
Earnest Money and Escrow Disputes
When a real estate transaction fails, disagreements may arise over who is entitled to the buyer's deposit or whether escrow funds should be released. Contractual provisions, notices, and the reasons for the failed transaction can affect the parties' rights.
Failure to Disclose Property Defects
Buyers may discover significant property conditions after entering into a purchase agreement or completing a transaction. Disputes can involve alleged failures to disclose material defects, inaccurate representations, or disagreements about what the seller knew and was required to disclose. These claims may involve legal theories beyond breach of contract.
Contract Contingencies and Closing Disputes
Financing, inspections, title conditions, and other contractual contingencies can become sources of disagreement. Disputes may also arise over missed deadlines, requests for extensions, or a party's refusal to proceed with closing.
Commercial Real Estate Transaction Disputes
Commercial property purchases and sales may involve complex contractual obligations, due diligence requirements, financing arrangements, and representations concerning the property. Disagreements can result in substantial financial exposure for buyers, sellers, and investors.
Resolving Real Estate Contract Disputes
Some disputes can be resolved through negotiation or other procedures required by the agreement. When resolution is not possible, litigation may be necessary to determine contractual rights and available remedies.
Depending on the facts and applicable law, potential remedies may include monetary damages or, in certain circumstances, specific performance requiring a party to fulfill contractual obligations. These remedies are not available in every dispute.
Lepera & Associates represents clients in real estate transaction and contract disputes, helping evaluate agreements, supporting documentation, and potential approaches to resolving disagreements. This work is part of our broader Real Estate Litigation practice.
Frequently Asked Questions
Can I sue a seller who refuses to complete a real estate sale?
Possibly. Whether a buyer has a viable claim depends on the purchase agreement, the seller's obligations, applicable contingencies, and the circumstances surrounding the refusal to close. Available remedies depend on the facts and California law.
What happens to my deposit if a real estate transaction falls through?
The answer depends on the purchase agreement, applicable contingencies, the reasons the transaction failed, and relevant legal requirements. A deposit is not automatically forfeited or returned in every situation.
Can I recover damages if a buyer breaches a purchase agreement?
Potentially. A seller's ability to recover damages depends on the contract, applicable law, and the nature of the breach. Contractual limitations and other legal requirements may affect recovery.
What if I discover property defects that the seller did not disclose?
Preserve the purchase documents, disclosures, inspection reports, photographs, and relevant communications. Whether a legal claim exists depends on the circumstances, including the seller's knowledge, applicable disclosure obligations, and available evidence.