Contracts
An Indiana seller who defaults on a purchase contract by refusing to close allows the buyer to seek:
AOnly return of earnest money
BReturn of earnest money, specific performance compelling the sale, or damages for breach✓ Correct
COnly an apology from the seller
DOnly reimbursement of inspection costs
Explanation
If the seller defaults, the buyer has multiple remedies: return of earnest money and out-of-pocket costs, an action for specific performance compelling the seller to complete the sale, or a lawsuit for damages caused by the breach.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA 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.
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.
Math Concepts
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