Definition
A breach is when you or the seller violates the contract terms—like failing to close on time or misrepresenting the property. It can result in legal action and damages.
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A breach occurs when either party fails to perform their obligations under the contract. Breaches can be material (serious violations that substantially affect the agreement) or minor. Material breaches typically give the non-breaching party the right to terminate the contract and pursue damages. Common breaches include failing to close on time, misrepresenting property condition, or failing to clear title.
Pro Tip
Understand specific performance and damages provisions in your contract.
Example
The buyer was in breach when they failed to remove the financing contingency by the required deadline.