A lot can ride on the success of a commercial real estate deal. If the purchase falls through, you could suffer significant financial loss and a derailment of your business plans. It is natural to wonder if you can seek damages in the event of a botched transaction.
Given the complexity of buying commercial property, it is not always clear when a seller has broken an obligation.
Breach of contract
When a party fails to meet the terms and conditions outlined in a legal agreement, a breach of contract has occurred. This allows for the wronged party to litigate for compensation. The nature of the damages will often stem from the specific terms violated.
A breach of contract can involve many questions, such as whether the agreement was legally valid, whether a breach happened, if the breach was a material one and if the breaching party has a legal defense.
Negligence or fraud
Some real estate deals collapse because the seller misrepresented or concealed important facts about the property. Such omissions can include the following:
- Property defects
- Boundary disputes
- Pest infestation
- The existence of other property owners
The seller might provide you with a disclosure form. According to Nerdwallet, some Texas real estate sellers sign a disclosure notice with the Texas Real Estate Commission or the Texas Realtors Association. Each notice fulfills the state requirements for disclosure. However, since the Realtor’s notice reveals additional property information, you may have an entitlement to learn more about a property depending on the notice.
Given how commercial real estate deals differ, there is no single basis for a buyer to seek damages. A thorough review of the purchase contract offers clarity as to possible violations and remedies.