Contracts
When a buyer fails to complete a purchase after removing all contingencies, the seller may retain the buyer's deposit as:
AA penalty fee
BLiquidated damages✓ Correct
CConsequential damages
DSpecific performance
Explanation
If the parties have initialed the liquidated damages clause in the RPA and the buyer defaults after removing contingencies, the seller may retain the deposit as liquidated damages, up to 3% of the purchase price for residential properties.
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