In Michigan, real estate transactions are governed by contracts that outline the obligations and expectations of all parties involved. When one party fails to uphold their end of the agreement, it constitutes a breach of contract. Whether you are a buyer, seller, or investor, understanding how to handle a breach of contract is essential to protecting your rights and financial interests. Here’s what you need to know.

1. Identify the Nature of the Breach

A breach of contract in a real estate deal can take several forms, including:

• Material Breach: A significant failure to perform contractual obligations, such as a seller refusing to transfer the title or a buyer failing to make payment.
• Minor Breach: A less significant failure that does not necessarily void the contract but may still warrant legal remedies.
• Anticipatory Breach: When one party indicates, either through words or actions, that they will not fulfill their contractual obligations before the performance is due.

2. Review the Contract Terms

The first step in addressing a breach is to thoroughly review the contract. Many real estate contracts include clauses that dictate specific procedures for handling disputes, such as mediation or arbitration. Additionally, the contract will outline potential remedies, including the right to seek damages or terminate the agreement.

3. Attempt to Resolve the Dispute Amicably

Litigation can be costly and time-consuming. Before taking legal action, consider discussing the issue with the other party to explore possible resolutions. In some cases, renegotiating the terms or granting an extension may be a practical solution.

4. Send a Formal Demand Letter

If an amicable resolution is not possible, the next step is to send a formal demand letter outlining the breach and requesting corrective action. This letter serves as official notice and may be required before pursuing legal remedies.

5. Consider Alternative Dispute Resolution (ADR)

Many contracts include arbitration or mediation clauses that require parties to attempt resolution outside of court. These methods can be faster and less expensive than litigation while still ensuring that your interests are protected.

6. Pursue Legal Remedies

If the breach is severe and other methods have failed, legal action may be necessary. Remedies for breach of contract in Michigan real estate cases include:

• Specific Performance: A court order requiring the breaching party to fulfill their obligations, such as forcing a seller to transfer the property.
• Monetary Damages: Compensation for financial losses caused by the breach, including lost profits or additional expenses incurred.
• Rescission: Canceling the contract and restoring both parties to their original positions before the agreement.



7. Consult an Experienced Real Estate Attorney

Navigating a breach of contract in a real estate transaction can be complex. Consulting with a knowledgeable Michigan real estate attorney can help you assess your options and take appropriate action to protect your interests.

At Attisha Law, we specialize in real estate law and contract disputes. If you are facing a breach of contract in a real estate deal, contact us today for a consultation to discuss your legal rights and remedies.