Contracts are an important part of the real estate process which is why they are important for anyone engaged in a real estate transaction to understand. Real estate litigation can be a financial, emotional and time drain on a real estate transaction or project so it is helpful to understand how to handle a real estate dispute, as well as to understand contracts and the role they play because many real estate disputes can be contract- based.
At its most basic level, a contract is an agreement between parties. Contracts define the rights and obligations of the parties to one another. Parties to a contract must be competent to enter a contract for it to be valid and there must be mutual agreement between the parties. It is also best to have a contract in writing for a number important legal reasons parties to a contract should be familiar with.
If a contract is breached, there are different options and legal remedies for the parties to consider. The non-breaching party may want to enforce the contract or they may seek monetary damages. A breach generally refers to when one of the parties has failed to perform their obligations according to the contract or has failed to timely perform their obligations according to the contract.
Real estate contracts govern many important relationships and real estate transactions which is why it is both useful and helpful to understand how they work. Knowing what to do if a contract has been breached is valuable and can help guide the parties in the direction of their legal remedies following a contract dispute.