Understanding Balking in Real Estate Transactions

Balking refers to a situation where one party in a negotiation or transaction fails to fulfill their obligations or commitments, often due to an unexpected event or change of circumstances.
In the context of a real estate transaction, balking can occur when a buyer or seller fails to complete the sale as agreed upon in the purchase agreement. This can happen for a variety of reasons, such as a change in market conditions, a sudden decrease in the buyer's financial resources, or a discovery of a defect in the property that was not previously known.
When balking occurs, it can lead to delays, missed deadlines, and even the collapse of the transaction. In some cases, balking may be a deliberate tactic used by one party to gain an advantage over the other, while in other cases it may be an unintentional consequence of external factors beyond the control of the parties involved.
Balking is often considered a breach of contract and can result in legal consequences, including financial penalties and potential litigation. To avoid balking, it is important for buyers and sellers to carefully review the purchase agreement and understand their obligations and commitments before signing. Additionally, both parties should be prepared to negotiate and compromise as needed to ensure a successful transaction.