Remedies Matter
How many times have you signed a contract without fully reviewing its provisions? Can you recognize the kind of contract where there is room to negotiate provisions to protect yourself versus a contract where you can’t?
Recently, Buyers under a Standard Agreement for the Sale of Real Estate (which is a standard form recommended and approved for members of the Pennsylvania Association of Realtors) came to me for advice. After executing the Standard Agreement they used, Seller changed her mind and wanted to sell her property to another family member instead of my client. In response, Seller’s agent presented a Termination Agreement to the Buyer – who was not inclined to agree to terminate the Agreement and were instead prepared to walk away.
Had the Buyer had representation and an agreement more protective of Buyer’s interests, this could have been avoided. In instances where one of the parties wishes to back out of the Agreement, it is important to note that there is a Buyer remedy, called Specific Performance, that does not exist for the Seller. Specific Performance allows a Buyer to force a Seller to honor the terms of his or her contract and to sell the property to the Buyer. The Specific Performance remedy is based on the concept that each piece of real estate is unique – meaning the only appropriate remedy for breach would be to require the Seller to specifically perform the act of transferring the real property.
Unfortunately, many agreements, including the one used by my client from the Pennsylvania Association of Realtors did not set forth specific remedies for a buyer when the Seller defaults. So, when we looked at that Agreement for the remedy of Specific Performance, it was not there.
While the Standard Agreement did not have language helpful to the Buyer, and they were in jeopardy of losing the opportunity to purchase the home of their dreams, we were able to negotiate a resolution to the matter, despite the lack of language in the Standard Agreement that was favorable to the Buyers.
In many contracts, there will be provisions that favor one party or the other. My goal is always to ensure that provisions protective of my client are included.
So here is what you should remember – if you are signing a contract, make sure that it protects you. If it is a significant purchase – and all purchases are arguably significant -, consider involving someone who can help to make sure that the contract provisions are protective of your interests, so you are not surprised by a document that does not protect you and your interests.
CGA Real Estate Department has over two dozen attorneys, paralegals, title insurance agents, legal assistants, and even an abstractor who can protect your interests in a real estate transaction. We are able to assist with an Agreement of Sale that protects you, and is not merely standard. Additionally, we can aid you with finding and dealing with a lender to finance your home, as well as holding an efficient and effective settlement. For more details on our Real Estate Department, please see https://staging.cgalaw.bytesco.site/practice-areas/real-estate/.
