What Are The 4 Basic Remedies For Breach Of The Real Estate Contract

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Meta Description: Real estate disputes can arise if a party to the contract commits a breach of the real estate contract.

Top 4 Remedies Available To The Wronged Party For Breach Of The Real Estate Contract

Unless limited by the legal document, there are four basic remedies for breach of the real estate contract:

1.Monetary Damages

In Florida, a buyer who breaches the sales contract can be held liable to the seller for money damages. It is calculated as the difference between the market value and the contracted price.

The seller can also bring an action for specific performance. But, specific performance is used more effectively by a wronged buyer than by a wronged seller. 

The reason behind this is that a defaulting buyer can claim that he can't financially meet a judicial order that requires him to buy the subject property.

2. Liquidated Damages

Both parties may want to agree in advance on the amount that the defaulting party will owe to the wronged party. This amount is outlined in the contract. It will not be disputed if a breach of the real estate contract occurs. 

These are considered the liquidated damages. To make the liquidated damages enforceable, they can't act as a type of punishment against the defaulting party. The liquidated damages can only be enforceable if it's determined that:

• Calculation of the actual damages for a specific breach is difficult
• The liquidated damages are appropriate under the circumstances

An example of the liquidated damages can be found in a residential sales contract. This contract states that the seller has the right to keep the deposit if the buyer does not meet his/her contractual obligations.

3.Specific Performance

A party can request specific performance by asking the court to force the other party to fulfill its contractual obligations.

An example of specific performance being used as a remedy is a court ruling that the seller must sell the property to the buyer.

4.Termination Of The Contract

In specific cases, termination of the contract is the best remedy. Generally, it includes the buyer being refunded his/her expenses and deposit incurred during the failed transaction like:

• Survey fees
• Attorney fees
• Title inspection fees

The Bottom-line

Breach of the real estate contract case is filled with hurdles. So, it's crucial to hire an experienced attorney who can formulate an effective strategy to handle your breach of the real estate contract case.