Breach of Real Estate Contracts: What Are Your Legal Options?

February 6, 2025

You’ve spent months searching for the perfect home, investment property,or  business location in Kansas City. You’ve negotiated terms, signed a contract, and made plans for the future. Then, out of nowhere, the other party backs out. Maybe the seller refuses to close the deal, or the buyer suddenly stops responding. Perhaps a hidden issue with the property was never disclosed. Whatever the case, you’re now left wondering—what happens next?

Real estate contracts are legally binding agreements, and when one party fails to uphold their end of the deal, the consequences can be stressful, costly, and time-consuming. But you don’t have to navigate this situation alone. At PathGuide Law, we help buyers, sellers, and investors protect their rights when a real estate contract is breached. Whether you need to enforce an agreement or seek financial compensation, knowing your legal options can make all the difference.

What Constitutes a Breach of a Real Estate Contract?

A breach of contract occurs when one party fails to meet their obligations under the terms of the agreement. In real estate, this can take many forms, including:

  • A seller refuses to complete the sale after signing the contract;
  • A buyer fails to make payments or follow through on financing;
  • One party does not disclose critical information about the property;
  • Deadlines are missed for inspections, required repairs, or closing.

Because real estate transactions involve significant financial investments, Missouri law provides clear legal remedies when a breach occurs.

Legal Remedies for a Breach of a Real Estate Contract

If you are dealing with a contract breach, there are several ways to resolve the issue:

1. Specific Performance – Forcing the Sale or Purchase: Sometimes, financial damages or compensation isn’tenough—especially when it comes to unique properties or high-value deals. In Missouri, a court may order specific performance, meaning the breaching party is legally required to follow through on their original agreement. This may apply in real estate cases, as no two properties are exactly alike.

2. Monetary Damages – Recovering Your Losses: If you’ve suffered financial harm due to a breach, you may be entitled to compensation. Monetary damages can cover:

  • Lost deposits or down payments;
  • Costs of inspections, appraisals, and legal fees; or
  • Lost rental income or investment opportunities.

Missouri law also allows for liquidated damages—that is, pre-agreed financial penalties written into the contract. If your contract includes this clause, the breaching party may owe you a set amount of money for failing to comply.

3. Rescission – Cancelling the Contract: In some cases, it makes more sense to walk away. If a major breach occurs, you may have the right to rescind (cancel) the contract and be restored to your original position. This allows both parties to move on without further obligations.

Preventing Contract Disputes Before They Happen

While legal remedies exist, prevention is always better than a lawsuit. If you’re entering a real estate deal, consider these steps to avoid future disputes:

  • Get everything in writing. Missouri law requires real estate contracts to be in writing to be enforceable.
  • Use clear deadlines. Specify exact dates for inspections, financing, and closing.
  • Include contingency clauses. Protect yourself with clauses covering financing, inspections, and disclosures.
  • Work with an experienced attorney. A real estate lawyer can review your contract to ensure it protects your interests.

Why You Need a Kansas City Real Estate Attorney

When a dispute arises, having the right legal team can make all the difference. At PathGuide Law, we help buyers, sellers, and investors:

  • Understand their rights under Missouri real estate laws;
  • Negotiate fair resolutions without unnecessary legal battles; and
  • Take legal action when a contract breach causes financial harm.

Whether you want to enforce a contract, recover damages, or explore other legal options, we are here to help.

Take Action Today – Contact PathGuide Law

A real estate contract breach doesn’t have to derail your plans. If you’re dealing with a broken agreement in Kansas City, don’t wait—reach out to PathGuide Law today. Our experienced real estate attorneys will assess your case, explain your options, and help you take the best course of action.

Contact PathGuide Law Today
PathGuide Law is ready to take on your business’s legal concerns, so you can focus on doing what you love most. Contact us today to get started on your case. 
CONTACT US