Seller enters into a contract with purchaser to sell real property for $100,000. Purchaser defaults on the contract, and at the time of default, the fair market value of the property is $90,000.00. Seller shall be entitled to recover from purchaser the following money damages:
A) 0.
B) $100,000.
C) $10,000.
D) $90,000.

Question

Quizplus · Accepted Answer

When a purchaser defaults on a contract to purchase real property, the seller may be entitled to recover damages. In this case, the seller can recover the difference between the contract price and the fair market value of the property at the time of default. Therefore, the seller can recover $10,000 ($100,000 - $90,000). The seller cannot recover the full contract price of $100,000, as the property is only worth $90,000 at the time of default.

Seller Enters into a Contract with Purchaser to Sell Real