The ink was dry. The terms were clear. The property seemed like a done deal—until the other side started missing deadlines, dodging calls, or quietly shifting their end of the bargain. If you’re in commercial real estate, chances are you’ve seen this kind of unraveling. When it happens, the question comes fast: Is this just a delay, or a real estate breach of contract?
In Texas, the answer depends on the terms agreed upon, the performance delivered, and the impact on the deal. A breach of contract in real estate occurs when one party fails to meet their legal obligations under a valid agreement, whether that’s refusing to close, misrepresenting property conditions, or suddenly backing out without legal justification.
But even more important than understanding if there has been a breach? Knowing what to do about it. At The Vastine Law Firm, PLLC, we help clients identify their legal position in collapsing deals and take action to recover damages or enforce terms. Attorney Scott K. Vastine combines courtroom trial experience with decades of business-side counsel, including overseeing a $300 million real estate portfolio. We don’t just know the law; we understand how real estate deals function from the inside out.
Are All Broken Deals a Real Estate Breach of Contract?
Not every failed real estate transaction qualifies as a breach of contract in Texas. To bring a viable claim under Texas law, a party must typically prove the following four elements:
- A valid, enforceable contract exists;
- The plaintiff performed, or was excused from performing, contractual obligations;
- The defendant breached the contract; and
- The breach caused injury to the plaintiff.
A breach can be ‘material’ (major) or ‘immaterial’ (minor). Texas courts typically won’t entertain lawsuits over insignificant deviations unless they materially affect the outcome of the contract.
Additionally, most real estate contracts must comply with the Statute of Frauds, which requires that agreements for the sale of real estate be in writing and signed by the person being held to the deal. However, oral modifications or ancillary agreements may be considered by the courts if they fall within a recognized legal exception, especially in cases involving commercial property.
What Counts as a Breach of Contract in Real Estate?
Under Texas law, whether a breach is actionable often turns on the concept of materiality. Courts will ask:
- Did the breach go to the “heart” of the agreement?
- Was the injured party deprived of the benefit they reasonably expected?
- Was the breach intentional, negligent, or based on unforeseen events?
Minor errors or delays may not warrant a lawsuit. But if the breach destroys the deal’s foundation or causes measurable harm, you likely have a strong claim. An experienced attorney can help you gather the proper documentation, including emails, timelines, inspection reports, and contracts, and convert your frustration into an enforceable legal position.
What Are Common Examples of Breach of Contract in Real Estate?
If you’re unsure whether your situation rises to the level of breach, consider these examples of breach of contract in real estate that often lead to litigation:
- Failure to close. One party backs out on the agreed-upon closing date without a valid excuse.
- Non-disclosure. The seller withholds known property defects or legal encumbrances.
- Financing default. A buyer fails to obtain the required financing within the specified time frame.
- Title issues. The seller cannot deliver a clear, marketable title as promised.
- Unauthorized use. Post-sale use of the property violates zoning or contract terms.
- Late performance. A party doesn’t meet a contractually essential deadline.
These scenarios cause delays and often disrupt financing, resale timing, or broader business plans. That’s why clarity in both documentation and enforcement matters.
What Remedies Are Available for Breach of Contract?
Under Texas law, several legal remedies are available to the harmed party in a breach of contract case. The proper remedy depends on the type of breach, what’s at stake, and how far the deal has progressed. Here’s what real estate lawyers in Houston may be able to help you pursue:
- Specific performance—a court-ordered completion of the agreement when monetary damages won’t suffice (common in unique property transactions);
- Monetary damages—compensation for lost profits, costs, or other financial harms caused by the breach;
- Restitution—returning money or property to restore both parties to their pre-contract position; and
- Rescission—cancellation of the contract and voiding all obligations, effectively undoing the deal.
Texas courts often favor specific performance over monetary damages in real estate cases, especially when the subject property is rare or uniquely valuable. But pursuing any remedy successfully requires legal precision and timely action.
How Can The Vastine Law Firm, PLLC Help?
Whether you’re trying to enforce a contract or defend against a claim, working with experienced real estate lawyers in Houston can make or break your case. At The Vastine Law Firm, PLLC, we:
- Review contracts for material terms and potential violations;
- Evaluate evidence and correspondence that supports (or weakens) your claim;
- Negotiate a resolution through demand letters or settlement talks;
- Represent you in court if litigation becomes necessary; and
- Preserve key documents and witness statements for future proceedings.
We’ve secured dismissals, settlements, and trial wins in complex real estate breach cases—including a $2 million jury verdict against Wells Fargo and a successful defense of a property manager in a non-compete and trade secrets dispute. We understand both high-stakes litigation and the nuances of real-world deal flow.
The Vastine Law Firm, PLLC: Real Estate Dispute Resolution Backed by Results
Attorney Scott K. Vastine brings decades of commercial litigation and in-house experience to real estate matters across Texas. As former General Counsel for a real estate investment firm, he understands what’s at stake and how to protect it. With over 200 cases won, The Vastine Law Firm, PLLC delivers legal insight and a strategic approach in even the most challenging contract disputes.
Whether you need urgent representation or simply want to understand your options, we offer complimentary consultations to assess your situation and outline your options. Reach out today to protect your interests and preserve your business’s future.