Contracts
In Alabama, a buyer who defaults on a purchase contract may face which remedy at the seller's option?
AOnly a refund of the earnest money
BCriminal charges for breach of contract
CSpecific performance, damages, or forfeiture of earnest money✓ Correct
DAutomatic cancellation with no consequences
Explanation
When a buyer defaults in Alabama, the seller may pursue specific performance (court order to complete the purchase), compensatory damages, or retain the earnest money as liquidated damages, depending on the contract terms.
People Also Study
Related Alabama Questions
- In Alabama, which remedy allows a court to order a party to complete a real estate transaction?Contracts
- In Alabama, if a buyer defaults on a real estate purchase contract, the seller's remedy may include:Contracts
- A buyer and seller disagree about who is entitled to the earnest money after a contract falls through. What should the Alabama broker do?Trust Funds
- In Alabama, an option contract differs from a purchase contract in that:Contracts
- What is the legal remedy of 'specific performance' in a real estate contract dispute?Contracts
- In a purchase transaction in Alabama, the earnest money deposited by the buyer is typically applied at closing toward:Finance
- A salesperson in Alabama receives an earnest money deposit. What must they do with it?Alabama License Law
- In Alabama, an earnest money deposit held by a real estate broker must be:Trust Funds
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →