Real estate purchases are often the biggest transactions people ever complete. They commit three decades of their future income to pay off the mortgage on the property. They completely upend their lives to take possession in most cases.
Therefore, very thorough contracts are necessary in the days leading up to a residential real estate transaction. The offer the buyer makes in writing influences the terms set in the purchase agreement signed by both the buyer and the seller. There is an expectation that everyone involved in the transaction should fulfill their contractual promises.
Unfortunately, many people buying real property face issues related to a seller breaching their agreement. What are some of the most common ways that sellers violate contracts during real estate transactions?
1. Removing fixtures, appliances or furniture
The condition of the property and the ownership of its contents can be key components of the purchase agreement. For example, the buyer may fall in love with certain elements of the home and may request that the seller leave them behind.
Certain elements, like light fixtures, are standard to leave behind after a real estate transaction. Other details, like appliances, require negotiation on a case-by-case basis. Sellers leaving and taking items specifically earmarked as part of the transaction is a relatively common contract breach.
2. Failing to vacate the premises
Buyers and sellers negotiate a specific possession date as part of the transaction. The seller usually agrees to leave by closing, if not sooner. The buyer can then take possession and start making repairs or moving in their property.
When sellers do not leave by the scheduled possession date, many complications can arise. The buyers either have to enforce the terms of a post-closing occupancy agreement or proceed with the legal challenges of evicting the sellers from the home.
3. Refusing to complete key repairs
Sometimes, inspections and appraisals turn up signs of property issues that could complicate the closing. The seller may agree to certain concessions, such as repairing property damage before they leave the home.
Buyers may perform their final walk-through, only to discover that the seller never reinstalled the banister in the main staircase or replaced the broken window in the kitchen. Such contractual breaches can create practical and financial hardships for buyers. They can also potentially derail the entire closing.
Having help when dealing with contract breaches during a real estate transaction can help buyers protect their own best interests. Buyers often need to consider whether following through with the transaction is the right decision when the seller has violated the terms of their agreement.