Many businesses in Louisiana will reach a point where real estate either needs to be bought or sold. For some, buying real estate is part of potential plans to expand. For others, selling real estate may be a way to generate revenue quickly. There are many different reasons for businesses in Louisiana to enter into a real estate transaction. And, in almost all of these transactions, a real estate contract will probably be a key part of the deal.
As our readers have been able to see in previous posts here, when a contract is involved in a deal the potential for contract disputes is a real possibility. But, the approach to the breach of a real estate contract may be different than the approach to a breach of many of the other types of business contracts that companies in Louisiana are used to being a part of.
When a seller breaches a real estate contract, this is usually done by the seller backing out of the real estate deal — the seller doesn’t want to sell the property any more. That can present quite a problem for the buyer, as it may result in a lost opportunity to secure a highly-coveted piece of real estate. The potential for litigation in this type of scenario is high, as the buyer will most likely want to take action to force the seller to stick to the terms of the real estate contract.
When a buyer breaches a real estate contract, the issue may be resolved without litigation — although litigation is still a possibility. In these types of cases, the seller may simply ask that the buyer reimburse expenses that accumulated for the seller while the real estate transaction was pending, and then the seller can move on to other potential buyers.
Source: americanbar.org, “Breach of Contract in Real Estate Cases,” James A. Zitesman, Accessed May 29, 2016