Contracts
A Florida real estate contract specifies that the deposit is 'liquidated damages' if the buyer defaults. This means:
AThe seller may sue for the full purchase price
BThe deposit is the seller's sole remedy in the event of buyer default✓ Correct
CThe seller may sue for additional damages beyond the deposit
DThe deposit is refunded to the buyer in all cases
Explanation
A liquidated damages clause specifies the deposit as the seller's pre-agreed, total remedy for buyer default. If this clause is in the contract, the seller cannot pursue additional damages for breach — the deposit is the sole remedy.
Related Florida Contracts Questions
- A Florida purchase contract is signed by both parties. Before closing, the seller decides to sell the property to a different buyer for a higher price. The original buyer's legal remedy is:
- Under the FAR-BAR 'AS IS' Residential Contract, what is the buyer's primary remedy if the seller fails to make required repairs agreed upon prior to closing?
- A Florida seller accepts an offer on their home. The buyer's loan is denied, and the contract contained a valid mortgage contingency. In this situation:
- In a Florida buyer broker agreement, the 'protection period' clause means:
- The Florida 'Buyer's Right of Rescission' for new condominium contracts allows a buyer to cancel within how many days?
- The FAR/BAR 'AS IS' Residential Contract for Sale and Purchase allows the buyer to:
- Under Florida contract law, an addendum is used to:
- Under the standard FAR/BAR Residential Contract, if the seller defaults, the buyer's remedies include:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →