Legal Question in Real Estate Law in California
Buyer's Anticipatory Breach
After signing purchase contract for condo the buyer repeated expressed in writing (for several weeks) he would not pay agreed price and would not close unless I submitted to a price cut. He used extensive intimation and threats to try to force a closing at the lower price. I refused to submit to his extortion. I read in Black's that anticipatory breach probably applies to his actions and that I can consider the contract cancelled if I choose. It says I am relieved of all obligations.
Buyer is also licensed agent bound by contract and law to honest, fair dealing, etc. I read that violations are misdemeanors.
Am I correct that repeated, written price repudiation constitutes material and total breach and I may consider the contract cancelled? Since buyer is licensed does his breach make him subject to criminal charges?
1 Answer from Attorneys
Re: Buyer's Anticipatory Breach
The buyer/broker cannot force you to accept a lower price. If you refuse to agree to a price reduction and there is a binding contract for a greater price you can sue him to force him to specifically perform at the higher price. Alternatively, if he unequivocally indicated that he was not going to carry out the contract and you then elected to treat his conduct as anticipatory repudiation entitling you to terminate the contract and he then sues you, you can successfully defend such an action by him if you can show that he repudiated. The conduct a broker is required to adhere to under the business and professions code govern his conduct when he is acting as an agent for a principal, not when, as here, he is acting on his own account.
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