Contracts
In a Kentucky transaction, the buyer's earnest money is forfeited to the seller when:
AThe buyer fails to obtain financing
BThe home inspection reveals significant defects
CThe buyer defaults on the contract without a valid contingency✓ Correct
DThe seller refuses to make repairs
Explanation
Earnest money is typically forfeited to the seller when the buyer defaults on the contract without legal justification (such as a valid contingency). Proper exercise of a contingency returns the earnest money to the buyer.
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