What is the maximum amount a broker would normally receive as damages from a defaulted sales contract?

The maximum amount a broker would normally receive as damages from a defaulted sales contract is equal to the amount of his or her agreed upon commission. This reflects the value of the broker's efforts in facilitating the transaction, which were jeopardized due to the buyer's default.

In many cases, the terms of the brokerage agreement outline that if a sale does not go through because of the buyer's actions, the broker may be entitled to recover the commission they would have earned had the transaction been successful. Thus, when a sales contract is defaulted and there is no completion of the sale, the broker seeks compensation based on the commission rather than a percentage of the deposit, as the deposit typically represents funds placed for earnest money during negotiations rather than the total financial expectations for the agent's services.

This principle serves to ensure that brokers are compensated for the time, effort, and resources they invest in facilitating real estate transactions, even in the event of a default by one of the parties involved.