Contracts
A Minnesota buyer and seller enter into a purchase agreement with a closing date of June 15. The seller cannot close on that date due to title issues. What is the buyer's remedy?
AThe buyer must close whenever the seller is ready
BThe buyer can demand performance, accept damages, or rescind the contract✓ Correct
CThe buyer automatically receives the earnest money back only
DThe buyer must extend the closing date by 30 days
Explanation
When a seller breaches a purchase agreement, the buyer has several remedies: specific performance (court order to complete the sale), monetary damages, or rescission (cancellation) with earnest money return. Minnesota courts have broad remedial powers in real estate contract disputes.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
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