Contract Termination. When Can a Buyer and Seller Legally Call it Quits?

I read a great article last week in the Realty Times about Contract Termination.  I wanted to share this with you because I thought it was interesting and something that might help you in your business.

Bob Hunt, the author, discussed the uncertainty and misinformation among real estate agents about when a buyer and seller can legally terminate a contract. He points out standard contracts have the clause “Time is of the essence”, an expected closing date and instructions for escrow deposits. All parties have time to meet these requirements and if they can’t, extensions can be negotiated.

However, he brings up a point worth thinking about. What happens if none of the parties meet the obligations of the contract even after extensions are allowed? Is the contract null and void?

Maybe, maybe not.

Read the entire article by Bob Hunt of and let me know what your thoughts. Do you think this recent case in California is a viable lawsuit or a blatant waste of taxpayer dollars?

Photo Courtesy of WordRidden