By tf-lawyer.com Professional insights indicate that contract breaches in real estate transactions are quite common. Recently, in the heart of San Gabriel Valley, a dispute arose between two Chinese individuals over a home sale and purchase, escalating to the point where they were considering legal action. Real estate experts emphasize that to avoid such disputes, it is crucial for both parties to have a complete and reasonable contract.
According to attorney Li Hong, a man named David was looking to sell his single-family home in East San Gabriel Valley, valued at nearly $1.5 million. This was a primary residence for David and his wife, who had taken great care to maintain it, making it feel brand new even after several years. They enlisted a trusted real estate agent to list the property. Before long, a buyer expressed interest, and the two parties agreed on a selling price of $1.2 million. The contract was signed swiftly, and the buyer provided a deposit as the process moved toward closing.
However, shortly after signing, the buyer learned that another similar property in the same community was listed at a significantly lower price. Feeling that they were at a disadvantage, the buyer approached David and demanded a price reduction, threatening not to proceed with the purchase if he didn’t comply. David, having already made concessions during the negotiation phase, refused to lower the price further, leading the buyer to explicitly state that they no longer wished to proceed with the purchase.
Li explained that this situation essentially constitutes a breach of contract—a rather typical scenario in real estate dealings. From a proactive communication standpoint, the buyer should have approached the seller sincerely, saying, “I think your house is priced too high, and now I’ve reconsidered. Can I get my deposit back?” Under normal circumstances, if the buyer breaches the contract, the seller is entitled to retain the deposit. However, had the buyer acknowledged their mistake and approached David calmly to negotiate, there was a good possibility that he would have refunded part of the deposit. Instead, the lack of constructive dialogue ultimately led to David’s refusal.
Li pointed out that breaches of contract are a frequent issue in real estate transactions, and failing to resolve them through proper channels often leads to further complications. This is why having a comprehensive and clear contract is of utmost importance. In this particular case, the contract included protective clauses for the buyer—specifically, contingencies stating that the sale would only proceed if the buyer was satisfied with the home inspection, appraisal, and loan approval.
If the buyer fails to meet any of these conditions within the specified timeframe, they have the right to withdraw and receive their full deposit back. However, there are instances where sellers might try to remove such contingency clauses to make the agreement more favorable to themselves. Still, if the seller conceals issues regarding the property, such as it previously being used for illegal activities or having mold that poses health risks, the buyer could potentially withdraw at any time, even with those clauses removed.
Real estate agent Wang Xiao also cautioned that it’s essential to conduct thorough due diligence before signing any agreements, ensuring that all terms are understood. He advised seeking legal or professional assistance for contract reviews and performing thorough home inspections to uncover any potential issues, insisting on full disclosure from the seller.
