A Florida buyer deposits $20,000 earnest money for a $500,000 property purchase. During the transaction, the buyer discovers the seller misrepresented the property's zoning. The buyer wants to cancel and recover earnest money plus additional damages for time and expense. The seller claims the buyer is in default for attempting to cancel. What is the most likely outcome?
Correct Answer
C) Buyer recovers earnest money and may pursue additional damages for misrepresentation
Correct: Material misrepresentation by the seller gives the buyer grounds to cancel and recover earnest money, plus potentially pursue additional damages for fraud/misrepresentation. Why not A: Seller's misrepresentation prevents claiming buyer default. Why not B: Misrepresentation may support claims beyond earnest money recovery. Why not D: No basis for splitting when seller committed misrepresentation.
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