Real estate deals in Queens and across New York City can fall apart for many reasons, and when they do, the financial consequences can be significant. Whether you are a buyer who lost a deposit after a seller backed out, or a seller facing a buyer who refuses to close, a breach of contract can leave you unsure of your rights and your next steps.
Real estate contracts in New York are legally binding agreements, and when one party fails to uphold their obligations, the other party often has legal options to recover their losses or compel performance of the deal. At Poltielov Law Firm P.C., we represent both buyers and sellers throughout Queens and the surrounding NYC boroughs in disputes arising from failed or disrupted real estate transactions.
If your real estate transaction has been derailed by a breach of contract, you do not have to navigate the dispute alone. Call us today at (718) 520-0085 to discuss your situation with one of our experienced real estate attorneys and find out how we can help protect your interests.
A breach of contract occurs when one party fails to fulfill an obligation set out in the purchase agreement without a legally valid excuse. Not all breaches are treated the same way under New York law, and the type of breach involved often determines what remedies are available.
A material breach involves a failure significant enough to undermine the entire purpose of the contract, such as a seller refusing to transfer title or a buyer failing to provide agreed upon financing. Material breaches typically give the non-breaching party the right to terminate the contract and pursue damages or other remedies.
A minor or immaterial breach involves a smaller failure that does not defeat the overall purpose of the agreement, such as a slight delay in providing certain documents. These breaches may not justify terminating the contract entirely, but the non-breaching party may still be entitled to damages for any losses caused by the failure.
An anticipatory breach occurs when one party clearly indicates, before the performance deadline, that they do not intend to fulfill their obligations under the contract. This allows the non-breaching party to treat the contract as breached immediately, rather than waiting for the actual performance date to pass.
Sellers can breach a real estate contract in a number of ways, including:
Buyers can also breach a real estate contract, often through actions such as:
When a real estate contract is breached, the down payment, often held in escrow by an attorney or title company, becomes a central point of dispute. Depending on which party is found to be in breach and the specific language of the contract, the down payment may be returned to the buyer, released to the seller as liquidated damages, or held pending resolution of the dispute through litigation or negotiation.
Depending on the circumstances of the breach, the non-breaching party may pursue several types of remedies, including:
Determining which remedy makes the most sense depends heavily on the specific facts of the transaction and what the injured party hopes to achieve.
In New York, the statute of limitations for filing a breach of contract claim based on a written contract is generally six years from the date of the breach. While this may sound like ample time, evidence and witness memories can fade, and delays can complicate efforts to recover a down payment or pursue other remedies, so it is best to act promptly once a breach occurs.
If you believe your real estate contract has been breached, taking the right steps early can protect your legal options:
Since founding the firm in 2015, R. Ariel Poltielov, Esq. has built a practice rooted in real estate litigation and transactions covering a number of practice areas with a focus on guiding buyers and sellers through purchases and sales of single and multi-family homes, condominiums, cooperatives, and commercial properties throughout New York. That hands-on experience with both sides of the closing table gives him a clear understanding of exactly where and why real estate deals fall apart.
Poltielov Law Firm P.C. understands how disruptive and financially stressful a failed real estate transaction can be, whether you are trying to recover a deposit or force a sale that was wrongfully abandoned. Our team carefully reviews every contract and communication involved in the dispute to identify the strongest path forward, and we are prepared to pursue litigation when negotiation does not result in a fair outcome.
If your real estate deal has fallen apart due to a breach of contract, do not wait to get legal guidance. Contact Poltielov Law Firm P.C. at (718) 520-0085 for a free consultation and let us help you understand your options.
A breach occurs when one party fails to meet a contractual obligation without a valid legal excuse such as refusing to close, failing to secure financing, or not disclosing known defects. For a fuller explanation of the types of breaches, see “What Counts as a Breach of a Real Estate Contract in New York” above.
Usually. When a seller is at fault, buyers are typically entitled to the return of their down payment, though the final outcome depends on the contract’s liquidated damages clause and the specific facts of the breach.
It depends on the reason for backing out and the terms of the contract. If a buyer breaches the contract without a valid contractual basis, such as an unmet contingency, the seller may be entitled to retain the deposit as liquidated damages under the terms of the agreement.
The deposit is typically held in escrow by an attorney or title company while the dispute is resolved, rather than being released to either party until there is an agreement or court order determining how it should be distributed.
Specific performance is an equitable remedy where a court orders the breaching party to close the transaction as agreed. It’s commonly sought in real estate cases because each property is considered unique, and money damages may not fully compensate the injured party. Courts typically require the plaintiff to show they are ready, willing, and able to close.
Yes. If your primary goal is financial recovery rather than completing the purchase or sale, you can pursue compensatory damages for losses such as additional housing costs, price differences on a replacement property, or other out-of-pocket expenses caused by the breach.
Not necessarily. Many real estate contract disputes are resolved through negotiation or mediation before ever reaching litigation, though some cases do require a lawsuit to reach a fair resolution.
Yes. A notice of default can trigger deadlines, waive certain rights, or lock you into a particular remedy if not drafted carefully. An attorney can help ensure the notice preserves all your options, whether you’re seeking the return of your deposit, specific performance, or damages, and aligns with the contract’s notice requirements.
