A buyer in New Jersey is considering her options after a seller breached a residential purchase contract. Which of the following is EXCEPT a remedy the buyer could pursue under New Jersey law?
Correct Answer
D) Demanding that the seller pay treble damages solely because the seller accepted a higher competing offer
Treble damages under the NJ Consumer Fraud Act require proof of an unconscionable commercial practice, deception, fraud, false pretense, misrepresentation, or knowing concealment — not merely a seller's decision to accept a higher competing offer. A seller breaching a contract by accepting a better offer is a breach of contract, but it does not automatically constitute consumer fraud under N.J.S.A. 56:8-1. Therefore, the buyer cannot demand treble damages solely on the basis that the seller took a higher offer. This option is the one that is NOT an available remedy in this scenario.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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