Contracts
A buyer who breaches a real estate contract and defaults may face which of the following from the seller?
AOnly return of the earnest money to the buyer
BForfeiture of earnest money, or the seller may sue for specific performance or actual damages✓ Correct
CAREC discipline
DLoss of mortgage eligibility
Explanation
A defaulting buyer may forfeit their earnest money as liquidated damages (if specified in the contract). The seller may also choose to sue for actual damages or seek specific performance (court order to complete the purchase).
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