Selling a home in Montana should be straightforward. You list the property, accept an offer, and close the deal. But sometimes the buyer backs out at the last minute or fails to meet their obligations. Other times, sellers refuse to complete the transaction after accepting an offer. When someone breaks a real estate contract, you’re not without options. Montana law provides several remedies for parties harmed by breach of contract.
What Counts As A Breach
A breach happens when one party fails to fulfill its contractual obligations. In real estate transactions, common breaches include:
- Buyer refuses to close after removing contingencies
- The seller accepts a better offer after signing a contract
- Either party misses important deadlines without a valid reason
- Buyer fails to secure financing when required to make good faith efforts
- Seller refuses to make the agreed-upon repairs
Not every problem is a breach. If a buyer can’t get financing despite genuine efforts, and the contract includes a financing contingency, that’s typically not a breach. The contingency protects them.
Your First Steps After A Breach
Don’t panic if the other party isn’t holding up their end of the bargain. Contact Billings real estate litigation lawyers to review your contract. Most purchase agreements include specific timelines and requirements for both parties. Document everything. Save emails, texts, and written communications. Note phone conversations with dates and key details. This documentation becomes important if you need to pursue legal action. Contact the other party in writing. Sometimes breaches happen due to miscommunication or misunderstanding. A clear written notice outlining the problem and requesting compliance can resolve issues before they escalate.
Legal Remedies In Montana
Montana law recognizes several remedies for breach of real estate contracts. Your best option depends on your specific situation and what you’re trying to achieve.
Specific Performance
This remedy forces the breaching party to complete the sale. Courts can order a reluctant seller to transfer the property or require a buyer to close. Specific performance works well when you want the actual property, not just money damages. Montana courts recognize that real estate is unique, making this remedy particularly relevant for property transactions.
Monetary Damages
You might prefer financial compensation instead of forcing the sale. Damages can include out-of-pocket expenses, lost profits, or the difference between the contract price and current market value. If you’re a seller and the buyer backs out, you could recover costs for extended mortgage payments, utilities, and marketing expenses while re-listing your home.
Earnest Money Forfeiture
When buyers breach, sellers often retain the earnest money deposit. Most contracts include language allowing this. The amount isn’t always enough to cover all damages, but it provides some compensation without litigation.
Working With Legal Professionals
Real estate contract disputes get complicated quickly. Billings real estate litigation lawyers understand Montana property law and can evaluate your situation. They’ll review your contract, assess the breach, and explain your realistic options. Some breaches aren’t worth pursuing legally. If your damages are minimal or the other party has no assets, litigation might cost more than you’d recover. An attorney helps you make informed decisions about whether to pursue legal action or move on.
Time Limits Matter
Montana has statutes of limitations for contract disputes. Generally, you have eight years to file a lawsuit for written contract breaches. However, waiting too long can weaken your position even within that timeframe. Memories fade, documents get lost, and witnesses become unavailable. Take action promptly when you identify a breach. Quick response shows you take the contract seriously and gives you more options for resolution.
Prevention Through Clear Contracts
The best way to handle breaches is to prevent them. Work with qualified professionals when drafting purchase agreements. Clear language about obligations, timelines, and remedies reduces disputes.
Understand what you’re signing. Ask questions about confusing provisions. Know your contingencies and deadlines. Many breaches could be avoided if both parties fully understood their commitments from the start.
Getting Help
Silverman Law Office, PLLC can review your contract and circumstances. Whether you’re dealing with a buyer who won’t close or a seller refusing to transfer property, legal guidance helps protect your interests. Understanding your rights under Montana law gives you the foundation to make smart decisions about your next steps.