Breach of Contract and Failure to Close

Buyer’s Options and Seller’s Options

In the event of breach of Contract or failure to close, both the Buyer and the Seller need to be aware that the earnest money is not all that is involved. The party who fulfilled all of his obligations and did not breach or fail to close can seek other and possibly more costly legal remedies as provided by the Contract.

UPON BREACH BY SELLER

If the Buyer performs all of the obligations of Buyer, and if, within five days after the date specified for Closing, Seller fails to convey the Title or fails to perform any other obligagions of the Seller under the Contract, then the Buyer can either:

  1. cancel and terminate the Contract, return the abstract to ethe Seller, and receive a refund of the Earnest Money, or
  2. pursue any other remedy available at law or in equity, including specific performance.

UPON BREACH BY BUYER

If, after the Seller has performed Seller’s obligation under the Contract, and if, within five days after the date specified for Closing, the Buyer fails to provide funding, or to perform any other obligations of the Buyer under the Contract, then the Seller has the option to:

  1. cancel and terminate the Contract, retain all sums paid by the Buyer, but not to exceed 5% of the purchase price, as liquidated damages, or
  2. pursue any other remedy available at law or in equity, including specific performance.