If a seller defaults on a contract, what is the buyer's first option for remedy?

In the context of real estate transactions, when a seller defaults on a contract, one of the most common remedies for the buyer is the option of accepting liquidated damages. Liquidated damages are specified amounts of money that are predetermined as compensation for a breach of contract. This provides a clear financial recourse for the buyer without needing to pursue lengthy legal actions.

Accepting liquidated damages is often beneficial because it allows the buyer to recover some of the losses incurred due to the seller's breach. This option generally avoids the complexities and uncertainties of proving actual damages in court. The damages must be reasonable and must represent a genuine attempt to pre-estimate the loss, not punitive in nature.

This approach is more straightforward than seeking a new buyer, as starting over can be time-consuming and does not guarantee a better outcome. Filing criminal charges is typically not applicable in real estate contract defaults, as these are civil matters, not criminal. Reducing the sale price is unlikely to be a practical remedy since the buyer is dealing with a default situation rather than negotiating terms. Thus, accepting liquidated damages serves as a direct and effective response in dealing with a seller's default.