When parties sign a real estate contract, it is with the assumption that the businesses, buyers, landlords or tenants will honor the terms. However, this is not always the case, or perhaps they even violated the law. The contract will usually outline the terms of contract violation, but the reality of solving it may be different.
Before going to court
If the other party has not disappeared or is willing to discuss the breach, resolving the dispute may be a matter of negotiating a solution through arbitration or mediation. Whether these options were outlined in the original contract, it is a faster and more economical approach to solving all types of legal disputes. It is particularly desirable if the parties in dispute will potentially continue to deal with each other as tenant and landlord, or as property owner and contractor.
Enforcement versus damages
The plaintiff should also determine what the objective of the negotiation or legal action is. Do they want the other side to honor the contract? Or do they want to seek damages for the financial harm and inconvenience the other party caused? Depending on the amount of damages sought, the dispute may be a matter for small claims court.
Going forward with a lawsuit
Legal options available through the courts include the following:
- Canceling the contract
- Compensation or punitive damages for the breach
- Specific performance, which is an alternative that still enables plaintiffs to reach their goals
These contracts are binding
Real estate contracts are binding regardless of whether it is the sale of a home, a commercial lease agreement, or a business arrangement to build something to specific standards or fix something. Regardless of the nature of the dispute, an attorney with real estate experience can help find a workable solution outside of court or holding the other side accountable in a court of law.