How to Breach a Residential Contract
- 1). Talk to the other party. Mutually agreeing to break or void the contract is the easiest method of breaching a contract without hassle. In the case of a residential property, agreeing to mutually break the contract will often result in a fee. For example, breaching a rental contract can result in paying a fine for early termination of the contact.
- 2). Back out of the contract within the three-day recission period. When buying a house, there is usually a three-day time period to back out. In most cases, the window of time prevents problems such as loans not going through or inspections showing more work than a potential buyer is willing to put into the property.
- 3). Prove that the other party breached the contract first. When signing a contract, if someone fails to adhere to his end of the bargain, the contract is null and void. The other party is not required to keep the contract.
- 4). Make a fraud claim. A fraud claim holds that one party misrepresented information and the other party came to harm as a result. For example, if the sellers of a home know about a problem with the house that an inspection does not catch and does not tell the buyer, they can be committing fraud.
- 5). Prove mental or physical incapacity. There are situations where a contract can be breached due to mental problems, physical injuries or similar issues. In this situation, proof takes the form of a doctor's testimony or confirmation about the problem and proof that there is not enough income to pay for the residence. Whether the individual breaching the contract pays a fine or not depends on the situation and proof provided. For example, someone who has been removed from a residence for mental or physical health problems and put into a hospital might be given reduced fees. Someone who is unable to pay, but not put into a situation where they are removed from the residence by a doctor might end up paying fees for breach.
- 6). Prove the party is not legally able to enter into a contract; for example, a minor cannot enter into a legal residential contract. The contract is null and void in situations where one individual is not of legal age to enter into a contract.