A seller in Sarasota fails to deliver clear title due to an undisclosed lien, preventing closing. The buyer has already given notice to vacate their rental property and hired movers. Under Florida law, what damages can the buyer recover?

Correct Answer

D) Out-of-pocket expenses directly related to the transaction

Correct: D - Out-of-pocket expenses directly related to the transaction. Florida law typically allows recovery of direct out-of-pocket expenses reasonably incurred in reliance on the contract, such as inspection costs, appraisal fees, and similar transaction-related expenses. Why not A: This option is incorrect because "Consequential damages including moving costs and temporary housing" does not match the rule tested by the question. The correct answer is "Out-of-pocket expenses directly related to the transaction". Florida law typically allows recovery of direct out-of-pocket expenses reasonably incurred in reliance on the contract, such as inspection costs, appraisal fees, and similar transaction-related expenses. Why not B: This option is incorrect because "Punitive damages for the seller's failure to disclose" does not match the rule tested by the question. The correct answer is "Out-of-pocket expenses directly related to the transaction". Florida law typically allows recovery of direct out-of-pocket expenses reasonably incurred in reliance on the contract, such as inspection costs, appraisal fees, and similar transaction-related expenses. Why not C: This option is incorrect because "Only return of earnest money and inspection costs" does not match the rule tested by the question. The correct answer is "Out-of-pocket expenses directly related to the transaction". Florida law typically allows recovery of direct out-of-pocket expenses reasonably incurred in reliance on the contract, such as inspection costs, appraisal fees, and similar transaction-related expenses.