Definition
Defaulting means you've violated the contract—like failing to close on time without a valid reason. The non-breaching party can sue for specific performance or damages.
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Default occurs when either party breaches the contract by not performing their required duties. Common examples include the buyer failing to close on time or the seller not providing clear title. The non-defaulting party has several remedies available, including specific performance (forcing the defaulting party to complete the transaction), monetary damages, or termination of the contract.
Pro Tip
Understand breach consequences before signing. Breaking the contract can be costly.
Example
When the buyer failed to close by the agreed-upon date without valid reason, the buyer was in default of the contract.