Contracts
A Maine buyer backs out of a purchase contract without a valid contingency. The seller may be entitled to:
ANothing; buyers can always cancel
BThe earnest money deposit as liquidated damages (if the contract so provides)✓ Correct
CThe full commission amount
DAll future profits the buyer would have made
Explanation
If a buyer defaults on a Maine purchase contract without a valid contingency, the seller is typically entitled to the earnest money deposit as liquidated damages (as specified in the contract), in addition to other available remedies.
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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
State-Specific Concepts
Escrow Disputes
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