A real estate contract can take many forms. It can be a lease, a purchase, or rental of a commercial or residential property. If a party breaches the contract, the other party can sue for damages. Damages refer to a sum of money used to compensate a party for the loss suffered as a result of the breach of contract.
Every property, house, or building has a market value. However, the contract price may be different from the market value. In real estate contracts, the difference between the market value and the contract price is the recoverable damages. The recoverable damages are called expectation damages. If the contract price is equal to the market value, no expectation damages will be awarded.
Even if expectation damages aren't recoverable, the non-breaching party can still recover other types of damages. Some of the more typical ones include:
Several limitations apply to recovery of damages:
If you think you are entitled to damages, an experienced real property attorney can help you sue the breaching party. If you are being sued for damages, a real estate lawyer can help you mount an effective defense.
Last Modified: 12-05-2017 10:49 PM PSTLaw Library Disclaimer
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