Often, a seller does not close the deal with a specific buyer, for a higher paying buyer arrives at the doorstep. In such a position, the erstwhile proposed buyer has the authority to terminate the PSA and seek a refund of any deposits from the seller. Additionally, a suit for damages may be pursued.
However, savvy sellers usually put forth a standard contract, to which any amendment is not solicited. Such contracts often prescribe limitations upon the rights of a buyer in case the seller breaches, affecting the upper cap of return of any money, right to sue, diligence cost, warranty, attorney’s fees, and others.
In the alternative, a buyer also has the right to seek specific performance of the contract, provided the buyer comes before the Court with clean hands. This remedy is usually preferred to be executed for a breach on the seller’s part, and not handing possession is not adequately remedied with monetary sum.
A suit for specific performance of the contract in anticipation of a breach can be filed in limited circumstances, depending upon the State law.
However, suppose a breach was discovered before the transaction’s closing. In that case, the buyer is deemed to have waived his remedies, and no action is taken once the transaction is closed unless otherwise agreed.
Rights of a Lessee in Case of a Lease
Lease agreements are primarily executed to transfer the possession and right to enjoy the property to the lessee. Nonetheless, the lessor or the landlord continues with the title to the property and is bound by the agreement to maintain a healthy premise for the lessee. The right to live in a place meeting with fire and hazard safety norms is one of the prime rights of a lessee.
Rights such as the right to not be discriminated against and not be charged more than permitted by the State law are regulated by Federal laws, State laws, and Local laws.
The right to seek additional amenities is a result of negotiation between the parties.
Often lessors tend to include language in the agreement which suppresses the right to a safe and habitable environment, which is wholly unwarranted by the policy of the law. Accordingly, most of the States have prohibited such phrasing.
If the lessor does not perform his duty of correcting the defects in the premises, the lessee is entitled to issue a termination notice. Alternatively, a lessee may get the defect corrected if the lessor is not and seek reimbursement from the lessor. Further, he may sue for damages for not complying with the terms of the contract.
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