A buyer and seller in Worcester, Massachusetts execute a Purchase and Sale Agreement (P&S) for $465,000. The P&S contains no contingencies. Before closing, the seller discovers a buyer who will pay $490,000 and refuses to close with the original buyer. The original buyer seeks damages. Under Massachusetts law, which remedy is most likely available to the original buyer, and why?
Correct Answer
B) Specific performance or monetary damages, because the buyer holds an enforceable written contract for a unique parcel of real property
When a seller breaches a valid, enforceable written Purchase and Sale Agreement in Massachusetts, the buyer has two primary remedies: (1) specific performance — a court order compelling the seller to convey the property — because real property is considered unique and monetary damages are deemed inadequate; or (2) monetary damages for the seller's breach. The buyer's choice of remedy depends on the circumstances, but both are available. The seller's desire to sell to a higher bidder does not extinguish the buyer's contractual rights under the enforceable P&S.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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