Contracts
In Delaware, what happens if a buyer defaults on a real estate purchase contract?
AThe seller is automatically entitled to all earnest money
BThe remedies are determined by the contract terms and applicable law✓ Correct
CThe seller must immediately re-list the property
DThe buyer owes the seller's agent a full commission
Explanation
The consequences of buyer default depend on the specific contract terms and applicable Delaware law. Remedies may include forfeiture of earnest money, specific performance, or damages.
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Key Terms to Know
Contingency
A 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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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.
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