Final answer:
The seller can often recover the difference between the contract price and the market price if a buyer breaches a contract for the sale of land. This is to compensate the seller for the loss incurred due to the breach. Exact remedies depend on local law and contract terms.
Step-by-step explanation:
When a buyer breaches a contract for a sale of land, the seller is typically entitled to seek damages. One form of damages that can be recovered is the difference between the contract price and the market price of the land at the time of the breach. This is because the law aims to put the non-breaching party in the position they would have been in had the contract been fulfilled.
In cases where the market price is lower than the contract price, the seller may indeed recover the difference in price. However, the specific remedies available can depend on the jurisdiction and the exact terms of the contract. Additionally, sellers might have the option to retain the deposit or down payment as liquidated damages, depending on the terms of the contract and local law.
It is essential for sellers to have an accurate property title and a clear idea of the dimensions and acreage of their land when selling. Furthermore, the provision of warranties or service contracts can affect the perceived value and reliability of the property, potentially influencing the ease with which a sale can occur if there is a breach of contract. Imperfect information can create difficulties in determining an appropriate price for such a transaction.