Contracts

Under a GAR Purchase and Sale Agreement, if the seller fails to close without legal excuse, the buyer may:

AA. Only retain the earnest money as liquidated damages
BB. Seek specific performance or sue for damages✓ Correct
CC. Demand an automatic price reduction
DD. Cancel the contract and purchase another property immediately

Explanation

If a seller defaults without legal excuse under a GAR contract, the buyer may seek specific performance (compelling the seller to close) or sue for actual damages. The buyer is not limited to only retaining earnest money.

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