Contracts

Under New York law, a seller who breaches a real estate purchase contract by refusing to convey title may be subject to which of the following buyer remedies?

AOnly return of the deposit; no further damages available
BReturn of the deposit, specific performance (court order to sell), and compensatory damages✓ Correct
COnly specific performance; money damages are not available
DCriminal prosecution for breach of contract

Explanation

A New York buyer whose contract is breached by the seller may seek: (1) return of the earnest money deposit; (2) specific performance (a court order compelling the seller to convey); and/or (3) money damages (including out-of-pocket costs and, in some cases, lost profits). The buyer chooses the appropriate remedy based on the circumstances.

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