What is anticipatory breach in a real estate context?

Anticipatory breach in a real estate context refers to a situation where one party indicates their intention not to fulfill their contractual obligations before the completion date arrives. This indicator of non-performance can manifest in various forms, such as a clear statement of intent or actions that suggest non-compliance with the contract terms.

For example, if a seller informs the buyer that they will not proceed with the sale prior to the agreed-upon closing date, this would constitute an anticipatory breach. The significance of recognizing this breach is that the non-breaching party has the right to take legal action or seek remedies even before the actual time for performance comes due. This proactive approach is important in real estate transactions, where parties often incur various costs and rely on timely execution of contracts.

In contrast, other choices do not accurately reflect the definition of anticipatory breach. For example, refusing to negotiate after a contract is signed is more about post-contractual behavior, while accepting a deposit without intent to close falls under fraudulent practices rather than anticipatory breach. Failing to communicate delays does not necessarily convey an intention not to fulfill obligations; it may simply reflect poor communication rather than a definitive indication of breach. Therefore, the correct answer emphasizes the clear expression of unwillingness to