Also known as: sale price · sales prices · sale prices · selling price · purchase price
Written by attorneys · grounded in primary & secondary sources — see below
The monetary consideration paid or to be paid by a buyer to a seller in exchange for property or goods. In foreclosure proceedings the amount determines whether a deficiency or surplus exists after satisfaction of the secured debt and costs. In misrepresentation actions the amount serves as the baseline for calculating the recipient's pecuniary loss.
Selena Singh defaulted on a mortgage held by Summit Bank after missing several payments. The bank foreclosed and the property sold at auction for $180,000 while the outstanding debt plus costs totaled $240,000. Because the sales price fell short of the debt the bank obtained a deficiency judgment against Singh for the $60,000 difference under state law.
Sean Steele entered an installment land contract to purchase land from Sapphire Technologies and paid 35 percent of the price before a prior unrecorded claimant appeared. The court awarded title to Sean Steele but imposed a lien on the land in favor of the prior claimant to secure the remaining unpaid portion of the sales price.
Select any source to read its text and confirm it supports the definition.
Santiago Sanchez purchased equipment from Southland Foods after the seller misrepresented its condition. The equipment's actual value at purchase was $45,000 while Sanchez paid a sales price of $72,000. Sanchez recovered the $27,000 difference as the pecuniary loss caused by the misrepresentation.
Sophia Singh's property was sold at foreclosure for $310,000. Under the state's statutory redemption provision Singh redeemed the land within the allowed period by tendering the sales price plus interest and costs to the purchaser.
Spencer Silver acquired land under an installment contract and paid 40 percent of the sales price before a prior unrecorded interest surfaced. The court granted title to the prior claimant but awarded Silver an equitable lien on the property measured by the amount he had already paid.
Seth Shapiro bought a commercial building after relying on the seller's negligent statement about its income stream. The building's true value was $1.1 million while the sales price was $1.4 million. Shapiro recovered the $300,000 difference as the pecuniary loss from the misrepresentation.
When the sales price is less than the secured debt plus costs the difference constitutes a deficiency that the mortgagee may recover by judgment unless state law prohibits or limits such recovery. When the sales price exceeds the debt and costs the surplus is paid first to junior lienholders and then to the mortgagor.
Supporting sources
A mortgagor exercising statutory redemption must pay the foreclosure sales price together with interest and costs within the statutory period. The purchaser at the sale holds title subject to this redemption right until the period expires.
Supporting sources
In actions for fraudulent or negligent misrepresentation the recipient recovers the difference between the value received and the sales price or other consideration given. This measure compensates for the pecuniary loss caused by reliance on the misrepresentation.
Supporting sources
…a new machine designed and represented as capable of making concrete blocks. It would not do the work and recovery of the purchase price was sought. The purchase order contained this provision: “There are no understandings, agreements, representations or warranties, expressed or implied, not specified herein respecting…