This is about a residential real estate purchase agreement:
On a long term purchase agreement (1 year), is the contract still valid, (meaning still on), if the buyer did not perform in a timely manner?
For example. the agreement stipulated that the buyer was supposed to pay $1000 by the 60th day and $2000 on the 120th day but the buyer did not pay anything even after the120th day. The seller's real estate agent did NOT ask the buyer to perform. Instead buyer asked for an amendment where the dates became 130th day and 220th respectively. Seller refused to sign the amendment.
So is the seller still obligated to the buyer?
There are things called "time of the essence" clauses. If the contract specified that performance shall be on such and such dates (120 days or whatever), and the buyer fails to perform, AND the contract specifies that time is of the essence, then the contract comes to an end.
You should also look at the default clauses in the contract and see what the consequences are for default. Does the seller keep the deposit? Can the buyer get a refund of the deposit? Can one or both sue for money damages? Specific performance?
Much more analysis goes into this answer than just saying "yes" or "no". But in general, you can give the buyer 1 more chance to perform within 10 days, and have the buyer agree that if not, the contract is terminated.
Again, it takes more analysis, but the practical approach is to give the buyer that 1 last chance to a certainty, in writing, that if performance is not rendered by the deadline, the contract is no more.
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A very detailed review of the contract is required to ascertain how the seller can get out of the agreement, if possible. As one colleague mentioned, "time is of the essence" is normally part of all residential purchase agreements. If it is a "material" breach, there may be grounds to determine breach of contract, but the remedies that are available will almost certainly require some kind of litigation to permit the seller to sell in the future (e.g. breach of contract, declaratory relief, and perhaps "quiet title".)
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
A full review of the purchase agreement and related documents would be necessary to properly advise you.
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