Contracts
What happens when a buyer removes all contingencies in a California purchase agreement?
AThe contract becomes void
BThe buyer becomes fully committed to completing the purchase and risks losing their deposit if they cancel✓ Correct
CThe seller must lower the price
DEscrow automatically closes
Explanation
Once contingencies are removed, the buyer is contractually obligated to complete the purchase. If the buyer cancels without a valid remaining contingency, the seller may be entitled to keep the earnest money deposit as liquidated damages.
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