Definition of "Breach of contract"

Rosemarie Averhoff real estate agent

Written by

Rosemarie Averhoffelite badge icon

RE/MAX Metro Associates

Failure, without sufficient reason, for one or both parties to perform the terms of a real estate contract. Breach requires unequivocal, decisive, and absolute refusal to carry out the agreement. When a breach takes place, the damaged party may recover the resulting losses. It is also possible to sue for performance if recovery is inadequate.

Comments for Breach Of Contract


How to cancel a contract with an agent that failed to ask my price per agreement of listing?

May 10, 2022  23:35:19

Real Estate Agent

Hey Jerry! Thank you for reaching out to us. We are sorry to hear that this happened to you. While working with a real estate agent is meant to simplify the home selling process, there are times when the relationship doesn't work between the seller and the agent. When it comes to canceling a contract with an agent, you have to acknowledge that you signed a legal document, and that can be binding in many ways.

Firstly, you need to analyze that contract and understand the clauses used by the agent to protect themselves. The contract terms can determine how difficult getting out of it could be. This is why reading the contract before you sign it is important. For this, we suggest you recruit a lawyer.

Secondly, verify if you are still under the probationary period, which may allow you to terminate without any consequences. If you are not, you may be required to pay some fees, and it can go as far as paying the expenses that the agent incurred during the process.

Thirdly, if you found the agent through a brokerage company, you can raise the issue with the broker and ask for another agent. They will require motives, but many brokers are likely to change the agent assigned to your property. to remain on good terms with the community in which they operate.

Lastly, grounds for termination can be anything from failure to communicate to unethical conduct, and these are specified in the contract. If the agent or the broker doesn't agree with the termination or the agent's change, you can take your complaint to the state department of real estate if necessary, again with the help of a lawyer, as these are just suggestions. Any legal issues should be dealt with with the help of legal representation.

The short version of this is that, to get out of a contract with a real estate agent, you will need a lawyer specializing in real estate law and contracts if neither the agent nor broker wants to work with your demands. We hope this helps you through the process.

May 13, 2022  17:03:08
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.


Popular Real Estate Terms

(1) Individual or business that is engaged to do some sort of construction work for another for a fee. There are basically three types of contracting: A general contractor enters into a ...

In an electrical system, the connection box where all the circuit systems are installed with a series of electrical breakers. The major distribution or collection duct in an ...

In an adjustable rate mortgage (ARM), the maximum rate that can be charged during the mortgage period. For example, John obtained an $80,000 6% ARM having a lifetime rate cap of 10.5%. ...

tenancy having no written lease or contract. A periodic tenancy can be on a month-to-month or week-t-week basis. ...

When a real estate owner wants to know what their property tax liability is, they calculate the assessment ratio for their property. An assessment ration is a relationship between a real ...

Percentage of rental property that is unoccupied. For example, a vacancy rate of 25% means that 25% of the rental unites are nor being used. Idle space can cause a significant cash drain ...

Property taken over by the government because the owner has failed to pay taxes on it. The property may revert back to the owner when the taxes are paid. If not, the government may sell the ...

Clause inserted into a commercial lease by a mortgagee stating the lessee's current lease will not be terminated if there is a foreclosure action against the landlord for the failure to ...

A void property is a real estate property that is immediately available for new owners or renters as it is vacated. Void real estate properties can be occupied at a short notice as no ...

Popular Real Estate Questions