Real estate contracts can take the form of a rental, a purchase or a lease. If the contract is breached, the other party may hire a Real Estate Lawyer in Davenport, IA and sue for the damages they suffered. Damages are an amount of money paid as compensation for losses endured as a result of the other party’s failure to fulfill the terms of the contract. Here, you will learn about damages as they apply in breach of contract cases.
Calculating Damages in Real Estate
Every building, house and property has a fair market value. However, the market value and the contract price rarely match. In a real estate contract, the difference between the two prices is recoverable by the injured party and their Real Estate Lawyer in Davenport, IA, and is referred to as “expectation damages”. If the prices are equal, there is no award.
Other Types of Damages
Even if you cannot recover expectation damages, you may be able to get compensation for other types, such as:
1. Liquidated damages
2. Consequential damages
3. Specific performance
4. Nominal damages
Limitations to Damage Recovery
There are several limitations on damage recovery in breach of contract cases. The person committing the breach must be able to reasonably foresee damages occurring; for instance, if a seller breaches on a home sale, they would have to pay damages to compensate the buyer for his or her moving expenses.
Damages must be proven with certainty – a claim of emotional distress is immeasurable, so it cannot be considered. The party suffering the breach has a responsibility to keep the loss from getting worse. If the buyer in the abovementioned example continues with plans to move into the house in question, they and their Real Estate Lawyer in Davenport, IA cannot recover for damages later.
