What remedies are available to a seller in a real estate contract if a buyer defaults?

Unless the remedy to seller is limited by the real estate contract, there are generally three remedies available to sellers if a buyer breaches:

1. Liquidated damages – Liquidated damages are an agreed-upon amount or way of calculating the damages that will be used if there is a breach. Typically, the liquidated damages available to seller in a real estate transaction is the buyer’s escrow deposit.
   
   
2. Breach of Contract – The seller keeps the real property and sues the buyer for breach of contract. The seller would seek money damages. See Frank Silvestri, Inc. v. Hilltop Developers, Inc., 418 So. 2d 1201, 1203 (Fla. 5th DCA 1982).
   
   
3. Specific performance – Seller sues buyer for specific performance to force the buyer to fulfill the terms of the contract. Specific performance is an available remedy to a seller if money damages to not adequately compensate the seller for buyer’s default. See Bell v. Alsip, 435 So. 2d 840, 842 (Fla. 4th DCA 1983). The seller may instead be awarded damages for the injuries the seller suffered.
   
   

You can tell if the remedies for seller are limited by reviewing the terms of the contract. For instance, if the contract states that liquidated damages are the “exclusive remedy” to seller for a buyer breach, then seller’s remedy is limited only to liquidated damages. See Dillard Homes, Inc. v. Carroll, 152 So. 2d 738 (Fla. 3d DCA 1963).