A buyer defaults on a PA Agreement of Sale with a purchase price of $380,000. The hand money deposit is $12,000 (retained by the seller as liquidated damages). The seller relists and sells the property 4 months later for $365,000, incurring $6,000 in additional carrying costs and $4,500 in remarketing expenses. If the seller had pursued actual damages instead of liquidated damages, what is the total potential actual damage claim?
Correct Answer
C) $25,500
Actual damages = Price difference + Carrying costs + Remarketing expenses. Price difference: $380,000 - $365,000 = $15,000. Carrying costs: $6,000. Remarketing expenses: $4,500. Total: $15,000 + $6,000 + $4,500 = $25,500.
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