Contracts
When a buyer defaults on a real estate contract, the seller's most common contractual remedy is to:
ASue for specific performance only
BRetain the earnest money as liquidated damages, if so provided in the contract✓ Correct
CRelist the property and charge the buyer the difference if it sells for less
DFile a lis pendens with the county recorder
Explanation
Many Arkansas residential contracts include a liquidated damages clause allowing the seller to retain the earnest money upon buyer default as the seller's sole remedy, in exchange for releasing the buyer from further liability.
Related Arkansas Contracts Questions
- When a seller accepts a buyer's offer with changes to the terms, this is considered a:
- An assignment of a real estate contract means:
- A real estate contract that is 'executory' means:
- In a real estate purchase contract, earnest money is typically held by:
- In a real estate contract, 'time is of the essence' means that:
- When a buyer defaults on a purchase contract, the seller's remedy of keeping the earnest money as full compensation is known as:
- A lease for more than one year in Arkansas must be:
- A buyer submits an offer. Before the seller responds, the buyer withdraws the offer. This is an example of:
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