Dealing With Disputes Arising From Terminated Purchase And Sales Agreements
Whether you’re a buyer or a seller, terminating a purchase and sales agreement can be a complicated and stressful process for you, more so if one of the reasons to terminate includes a breach of contract, failure to obtain financing, or because of property title issues.
And disputes can arise between all parties even after you terminate this purchase and sales agreement. These disputes may surround matters like the refund of the buyer's deposit, the division of transaction-related costs, and the transfer of property ownership. Let’s have a look at these.
Buyer’s Deposit
The deposit is typically held in escrow until the transaction is complete, and in case the agreement is terminated, the buyer may want their deposit returned. This may not sit well with the seller, who may consider this a breach of contract and argue that the deposit should be forfeited.
Allocation Of Expenses
Now it’s also possible that since the buyer paid for an inspection and appraisal of the property, they feel entitled to a reimbursement. The seller may not consider themselves to be liable to reimburse these expenses as the transaction did not close.
Property Ownership
Say the agreement is terminated. Who has the right to the property? Who gains from the improvements that may have been invested in it? Either party may be fighting for these rights, and as a result of this disagreement, litigation may be necessary to resolve the dispute.
In conclusion, the termination of a purchase and sales agreement can lead to many disputes between the parties involved. A skilled attorney can help guide you through the process and protect your interests. Real estate litigators are legal experts who specialize in handling property-related disputes. They can explain your legal options and represent your best interests throughout the dispute resolution process, and if possible, help you settle outside of court.
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