When a real estate contract is broken, it means one party has failed to meet their obligations under a legally binding agreement. This can include a buyer backing out of a deal after conditions have been waived, a seller refusing to close on the agreed date, a landlord failing to provide a habitable rental unit, or a tenant breaching lease terms by subletting without permission. It may also involve missed deadlines, financing issues, or disputes over what was included in the sale of a property.