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if a purchaser of residential property is in breach of contract and is being sued for damages by the seller, can the seller still market the property to other purchasers or does the sale of property have to be put on hold until the claim against the purchaser is settled?
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Breach of contract
Where a Purchaser is in breach, the Seller usually takes three steps:
1. Gives the Purchaser notice of the breach and a time within which to remedy the breach (reference is made to the applicable clauses in the sale agreement);
2. If the Purchaser does not remedy the breach, then the Seller has to elect whether to enforce the agreement or cancel and sue for damages. If the Seller cancels, then
3. The Seller sues the Purchaser for damages. Usually the Seller would have to resell the property to determine damages such as the difference in selling price.
I point out that the estate agent is usually entitled, in terms of most sale agreements, to also sue the Purchaser for the agent's commission, where the Purchaser commits a breach and the contract is canceled by the Seller due to such breach.
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