Contracts
In Massachusetts, a 'liquidated damages' clause in a Purchase and Sale Agreement typically specifies that if the buyer defaults, the seller's remedy is:
ASue for the full purchase price
BRetain the buyer's deposit as the sole remedy✓ Correct
CRetain the deposit plus 5% of the sale price
DRequire the buyer to purchase a substitute property
Explanation
A standard Massachusetts P&S liquidated damages clause provides that the seller's remedy for buyer default is retention of the deposit as agreed-upon damages. Both parties benefit from this certainty: the seller gets the deposit, and the buyer's liability is capped at the deposit amount.
Related Massachusetts Contracts Questions
- A Massachusetts homebuyer's P&S specifies that appliances 'in good working order' are included in the sale. After closing, the buyer discovers the dishwasher doesn't work. The buyer's remedy is:
- In Massachusetts, a 'lease with option to purchase' gives the tenant:
- Under Massachusetts law, which type of agency relationship best describes a real estate agent who has received written authorization to execute contracts on behalf of the principal?
- In Massachusetts, an Offer to Purchase Real Estate is typically:
- In Massachusetts, the P&S 'closing costs' allocation is most often determined by:
- A Massachusetts seller 'accepts' a buyer's offer but requires the buyer to also purchase the seller's furniture. This modified acceptance is legally a:
- Massachusetts courts apply the 'business judgment rule' to condominium association board decisions when:
- A Massachusetts seller who 'warrants' title in the deed assumes greater liability than a seller who gives only a 'quitclaim.' The warranty deed seller is exposed to liability for:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →