Real Estate Breach of Contract in Rhode Island | Real Estate Breach of Contract

Real estate transactions are often among the most significant financial dealings an individual or business will make. With large sums of money and property rights at stake, contracts are crucial for ensuring that both parties fulfill their obligations. When one party fails to fulfill the terms of a purchase and sale agreement, the result is a breach of contract—a legal issue that can delay closings, derail deals, and lead to substantial financial consequences.

At PALUMBO LAW, we represent buyers, sellers, and investors across Rhode Island in disputes involving real estate contract breaches. Whether you’re seeking to enforce the contract, recover damages, or defend against an unfair claim, our legal team can guide you through your options and protect your interests every step of the way.

Common Reasons for Breach of Real Estate Contract

Real estate contracts outline the rights and obligations of both parties, including deadlines, contingencies, financing, inspections, disclosures, and more. A breach occurs when one party fails to meet one or more of those obligations without a lawful excuse.

Some of the most frequent reasons for breach of contract in Rhode Island real estate transactions include:

Failure to close on time: Delays in closing due to financing issues, title problems, or lack of preparation.
Failure to secure financing: When a buyer cannot obtain a mortgage and fails to notify the seller as required under a financing contingency clause.
Refusal to transfer title: A seller backs out of a deal or refuses to transfer clear title.
Undisclosed property defects: The seller fails to disclose known issues with the property, violating disclosure laws.
Failure to deliver agreed-upon repairs: Either party does not fulfill repair obligations outlined in the contract.
Breach of contingency terms: For example, ignoring inspection results, appraisal requirements, or home sale contingencies.

A breach can be material (serious enough to impact the entire deal) or minor (not affecting the overall outcome), and Rhode Island law distinguishes between the two when evaluating damages or contract termination rights.

How a Breach Affects the Purchase and Sale Agreement

When a contract is breached, the non-breaching party may suffer significant losses, including missed opportunities, wasted expenses, and potential legal exposure. A breach can:

Delay or cancel the closing process
Result in the loss of escrow or deposit funds
Trigger legal liability for damages or specific performance
Jeopardize property possession and use

For buyers, this could mean losing out on a desired property or facing unexpected costs. For sellers, a breach might involve lost time on the market, reputational harm, or carrying costs while a new buyer is sought.

Legal Remedies for Real Estate Breach of Contract

At PALUMBO LAW, we help clients pursue or defend against a range of legal remedies when a real estate contract is breached:

Specific Performance

The court orders the breaching party to fulfill their contractual obligation (e.g., forcing a seller to complete the property transfer).

Monetary Damages

Compensation for losses such as inspection fees, legal costs, or the difference in value if the deal must be renegotiated or replaced.

Rescission

The contract is canceled, and both parties are restored to their pre-contract position. This can be helpful when continuing with the agreement would be unfair.

Retention or Return of Earnest Money Deposit

In many cases, the buyer’s deposit is the subject of dispute. We help protect our clients’ rights regarding whether those funds should be returned or forfeited.

How PALUMBO LAW Can Help

Real estate contract disputes require an understanding of both property law and contract enforcement. At PALUMBO LAW, our team assists clients by:

Reviewing the purchase and sale agreement and identifying breach issues
Evaluating the severity of the breach and applicable remedies under Rhode Island law
Negotiating out-of-court settlements or contract modifications when possible
Litigating breach of contract claims in court when necessary
Protecting earnest money deposits and advising on dispute resolution options

Our goal is to resolve contract issues efficiently while protecting your financial and legal interests.

Contact PALUMBO LAW for Help with Real Estate Contract Disputes

If you’re involved in a real estate transaction and believe a contract has been breached—or you’re being accused of a breach—it’s important to seek legal counsel as soon as possible. The earlier you act, the more options you may have to resolve the matter without costly litigation.

PALUMBO LAW is here to help clients throughout Rhode Island resolve breach of contract claims with confidence. Our firm offers practical solutions, skilled negotiation, and, when needed, aggressive litigation to protect your rights in every stage of a real estate transaction.