Remedies for default of an ILC:
– Sue for the remaining installments due with interest
– Specific performance of the contract – Some courts require a showing that the remedy at law was inadequate. For specific performance of the entire balance of the contract, include an acceleration clause. SP is a good remedy when the vendee has assets to satisfy the contract price and the land is worth less than the contract price.
– Damages – Difference between the contract price and the FMV of the land at the time of the vendee’s breach. Available when the vendee has abandoned the land.
– Sue to foreclose his vendee’s rights – Vendor treats the ILC as a mortgage and the land is sold by judicial sale. Strict foreclosure which deprives the vendee of equity is also available.
– Sue to quiet title or rescind the contract
– Most have a forfeiture clause that gives the vendor the option to declare the contract terminated, retake possession, and retain all payments under the contract as liquidated damages. If the forfeiture remedy is necessary to regain the land, other remedies may be barred by the election of remedies doctrine.
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