Breach of Contract in a Florida Commercial Real Estate Transaction
If you have ever purchased or invested in commercial real estate, you already know what a stressful time it is between signing the contract and closing the deal. Many Florida commercial real estate transactions close without any problems, while others are not carried out as agreed to in the terms. That can result in a different outcome than intended or even prevent the closing from happening. Because real estate contracts need to be in writing, violating the terms could breach the agreement.
When you are faced with a breach of contract, it’s crucial to contact an experienced West Palm Beach breach of contract lawyer who can help. At the Law Offices of Larry E. Bray, P.A., we have years of experience dealing with Florida commercial real estate transactions and breach of contract cases. If you are buying or selling commercial real estate, you need to understand the terms of the contract so you can protect your rights in the event the other party breaches the agreement. Also, you want to make sure you don’t inadvertently breach the deal either.
What Is Considered a Breach in a Real Estate Transaction?
When someone violates any term within the real estate agreement, it can be considered a breach. Your potential remedies will vary based on whether the breach was considered to be material or minor. A material breach means the party who violated the agreement substantially impacted the non-breaching party. That usually means you did not get the result that the contract specified. Remedies for a material breach will vary, but the non-breaching party could choose not to perform their duties and/or seek monetary damages.
A non-material breach is one that happens when the breaching party violates a minor aspect of the contract. The non-breaching party could receive compensation if they can provide evidence of damages sustained due to the breach.
The court could order the breaching party to take a particular action, which is known as specific performance. Contract law provides for monetary damages, but that isn’t always enough in some cases. Specific performance is an equitable remedy that is available to both parties. In a situation where the buyer wants specific performance, they are asking the court to order the seller to finalize the transaction.
If the seller asks for specific performance, it means they typically want the buyer to move forward purchasing the property. Courts usually award specific performance to buyers rather than sellers, as monetary damages can generally make the seller whole. But buyers may need a combination of equitable remedies and financial compensation. Buyers often have other expenses, such as title and escrow expenses, consequential damages, interest, etc.
Contact a Florida Breach of Contract Attorney
Do you need assistance with a breach of contract resulting from a Florida commercial real estate contract? If so, contact the Law Offices of Larry E. Bray, P.A., to schedule an initial consultation. Let us review your contract and help protect your rights.