Contracts
A Massachusetts buyer who backs out of a signed Purchase and Sale Agreement without cause may lose:
AOnly the option fee
BTheir entire earnest money deposit as liquidated damages✓ Correct
CNothing if they give proper written notice
DOnly a nominal cancellation fee
Explanation
If a Massachusetts buyer defaults on a P&S without legal justification, the seller is typically entitled to retain the earnest money deposit as liquidated damages, as specified in the contract.
Related Massachusetts Contracts Questions
- In a Massachusetts condominium transaction, the buyer is entitled to review the minutes of the past 12 months of condominium trust meetings. This review is important because it reveals:
- In Massachusetts, the 'clean hands' doctrine may prevent a party from obtaining equitable relief (such as specific performance) if:
- A Massachusetts buyer submits an offer with a 48-hour acceptance deadline. If the seller fails to accept within 48 hours, the offer:
- A Massachusetts buyer's P&S includes a 'due diligence' contingency rather than a specific home inspection contingency. This broader contingency allows the buyer to:
- In Massachusetts, a real estate contract signed under duress (one party was threatened or coerced into signing) is:
- The Massachusetts P&S 'closing date' clause typically specifies when:
- A Massachusetts residential P&S is signed but the property burns down before closing. Under the common law doctrine of equitable conversion, who bears the risk of loss?
- A Massachusetts P&S contains a 'walk-through' provision allowing the buyer to inspect the property before closing. If the buyer discovers new damage at the walk-through, they may:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →