In a real estate sale, the closing is delayed because the seller cannot render possession by the closing date. The buyer had planned to move in; the seller expects to deliver by June 10. The buyer can recover damages equal to the fair market rental value for the period of delay. The storage costs for keeping items elsewhere are not recoverable. Which option matches?

• A. The buyer may recover the storage costs incurred.
• B. The buyer may recover the fair market rental value for the period of delay.
• C. The buyer may recover both the storage costs and the fair market rental value.
• D. The buyer may recover only the difference in purchase price.

Answer: (B)

When possession is delayed, the buyer’s damages are measured by the loss of use of the property during the delay. The typical remedy is to compensate the buyer for the rent they would have paid to occupy a similar property in that interim period, i.e., the fair market rental value for the delay. This mirrors the expectation that the buyer wanted to occupy the home at the closing date and now must arrange temporary housing or storage elsewhere, generating a loss equal to the rental value for that time.

Storage costs are not recoverable here because they are incidental to safeguarding belongings and are not the direct loss of use caused by being unable to take possession. The main damage is the inability to use the home, which is addressed by compensation for FMV rent during the delay. Therefore, the best match is the option stating recoverable damages equal to the fair market rental value for the period of delay.