Consequential damages (also known as special damages) in a Florida real estate transaction are damages that do not result directly from an action, but instead are a consequence of an action. For example, if a buyer breached a real estate contract and caused the transaction to cancel, consequential damages could include fees the seller had to pay, as a result of buyer’s breach, to the closing agent, other closing fees, and real estate agent fees.
Common examples of consequential damages include property damage, personal injury, attorneys’ fees, lost profits, loss of use, and damages related to third party claims.
Consequential damages are generally available to a party when there is clear proof that the other party failed to meet their contractual obligations. They are recoverable if they were foreseeable or contemplated by the parties when the parties entered the contract.