What happens when the buyer or seller breaches the purchase contract?

Remedies available to buyer when the seller a materially breaches a purchase agreement contract include:

  • abandoning the transaction by entering into a mutual cancellation of the purchase agreement and escrow instructions
  • acquiring the property by pursuing specific performance of the purchase agreement
  • pursuing the recovery of money, whether or not the buyer still wishes to acquire the property

For example, when the seller resells the property to another buyer at a higher price after accepting an offer from the original buyer, the original buyer may pursue specific performance and demand the seller adhere to the purchase agreement.

However, if the original buyer decides not to pursue specific performance, the seller is liable to the original buyer for the difference in price. A buyer’s money claims include:

  • general damages, money directly expended or the monetary value lost in the transaction
  • special damages, money collaterally lost due to the seller’s breach
  • prejudgment interest at the rate of 10% on all monies recovered.

A buyer is allowed to recover expenditures incurred prior to a seller’s breach to prepare a property so they can take possession, such as construction costs advanced by a buyer for upgrades and alterations. However, the purchase agreement by its provisions needs to reflect the intention of the buyer to incur these expenditures.

Conversely, a seller of real estate faced with a materially breaching buyer needs to promptly decide whether to:

  • enforce the purchase agreement;
  • remarket the property for sale; or
  • retain the property and postpone or entirely forego any resale effort.

A seller’s total recoverable losses when promptly remarketing and reselling the property include:

  • carrying costs of mortgage interest payments, taxes, insurance, maintenance and utilities incurred by the seller and interest on the seller’s net equity between the date of the breach and the date escrow closed on the resale less the property’s rental value when the seller remains in possession; and
  • any reduction in the seller’s net proceeds on the resale below the net proceeds the seller was to receive from the breaching buyer’s transaction due to:
    • the increased closing costs the seller additionally paid, such as the new buyer’s nonrecurring closing costs, financing fees on the resale and mortgage prepayment penalties; and
    • any decline in the property’s resale price.

When the seller takes the property off the market or is not diligent in their resale efforts, their recovery of money is limited to their out-of-pocket transactional expenses, property operating expenses incurred before the buyer’s breach, and any move out and move back relocation expenses to fulfill their performance under the purchase agreement.

When the seller remains in occupancy through the date of the breach, these costs are offset by the rental value of the property.

Bathroom Vanity Ideas That Are Functional and Stylish

When it comes to bathroom vanity ideas, there’s plenty to desire. Besides the abundance of storage space they can add, vanities also come in a variety of styles to suit any design aesthetic and need. And when the right one is matched to your home’s decor, it can make your space truly shine.

The benefit of a vanity is that it hides the pipes beneath your sink and provides an extra area to tuck away toiletries and cleaning supplies you need in the bathroom.

“The extra storage from the built-in drawers and shelving is one of the key benefits of a bathroom vanity—and the fact that it’s a piece of furniture that can dress up your bathroom’s look,” says Amy Bly, a home expert with Great Impressions Home Staging/Interiors, in Montville, NJ.

Whether you’re looking to renovate your master loo or touring open houses, consider the efficiency and style a vanity can offer.

To help you visualize the best loo for you, here are six bathroom vanity ideas.

See them HERE!

San Diego North County Monthly Housing Market Indicators May 2018

Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong.

Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.

  • Closed Sales decreased 18.4 percent for Detached homes and 17.0 percent for Attached homes.
  • Pending Sales decreased 5.9 percent for Detached homes and 3.4 percent for Attached homes.
  • The Median Sales Price was up 4.0 percent to $728,000 for Detached homes and 10.0 percent to $480,000 for Attached homes.
  • Days on Market decreased 7.1 percent for Detached homes and 19.0 percent for Attached homes.
  • Supply increased 8.3 percent for Detached homes and 14.3 percent for Attached homes.

Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real
estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.

Download (May-2018-Monthly.pdf)

Pot Humor: 12 Hilarious Planters to Perk Up Your Home

When you think about exciting home decor, chances are good your mind probably doesn’t immediately drift to planters.

Terra-cotta, ceramic, plastic—they’re pots. For plants. What more is there to say on the subject?

A lot, apparently! In fact, there’s a whole, wide world of weird, hilarious, and creative—did we say weird?—planters out there, just waiting for you to discover them.

So check out these fun ways you could be showing off your houseplants. Although to be honest, if you snag one of these, we have a feeling no one’s going to be focused on your plants

See the 12 HERE

Lower the Drawbridge: This Week’s Most Popular Home Is a Castle in Michigan

1. 8 Marquette Dr, Marquette, MI 

Price: $1,500,000
Why it’s here: Hear ye, hear ye, all those with royal aspirations. This is one cool castle. The 15th-century-style facade is festooned with turrets and flags and gives way to a modern interior. Designed and built by the owner, general contractor Jorma Lankinen, the layout includes four bedrooms, 3.5 baths, and 5,546 square feet. 

Fit for a king, the spread includes a large living room with floor-to-ceiling brick fireplace, casual and formal dining areas, hand-painted murals created by a local artist, and a well-appointed kitchen. The master suite offers a private deck, plus there’s an office, a home theater with a bar, and a sauna.

Asked why he built the magnificent palace, Lankinen said, “Because I could. It’s my personal home. I’m a builder. I’ve been building homes for 45 years already. I just wanted to build something unique.” Mission totally accomplished!

The home builder says he’s ready to move on to his next project and create another custom-built home. Can he top a castle?

See the rest HERE

Mortgage Rates Inch Backward

Mortgage rates dipped for the second consecutive week.

Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week.

Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.

While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill. Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity.