If the seller defaults on the FAR/BAR purchase and sale contract, what can the buyer do?

When a seller defaults on the FAR/BAR purchase and sale contract, the buyer has the right to cancel the contract. This option provides the buyer with a way to exit the agreement without further obligations when the seller fails to meet their contractual responsibilities.

In real estate transactions, defaults by sellers can range from not providing necessary disclosures to failing to close on the sale. Generally, if the buyer decides to cancel, they can typically reclaim their earnest money deposit as part of the remedy for the breach of contract, as long as they follow the proper notification procedures specified in the contract.

While a buyer might also consider other actions such as negotiating a new contract or filing a lawsuit against the seller, these steps involve additional complexities and potential financial implications. Continuing with the sale unconditionally is not advisable since the seller’s default indicates that they are unable or unwilling to fulfill the initial terms of the agreement. Thus, cancellation is often the most straightforward and legally sound option available to the buyer in such situations.