Contracts
A NH buyer's offer to purchase includes an earnest money deposit of $10,000. If the seller accepts and the buyer later defaults without legal justification, the deposit:
AIs automatically returned to the buyer
BMay be retained by the seller as liquidated damages if the contract so provides✓ Correct
CMust be paid to the listing broker as their earned commission
DIs held by NHREC pending resolution
Explanation
Most NH purchase contracts include a liquidated damages clause stating that if the buyer defaults, the seller may retain the earnest money deposit as their remedy. This provides both parties with certainty about consequences of default and avoids costly litigation over actual damages.
Related New Hampshire Contracts Questions
- In NH, a purchase and sale agreement that requires the buyer to 'accept the property in its current condition' most likely refers to:
- A buyer in New Hampshire inserts a home inspection contingency into the purchase agreement. This allows the buyer to:
- An escalation clause in a NH purchase offer allows the buyer to:
- A NH seller's obligation upon signing a purchase and sale agreement includes:
- A New Hampshire buyer includes a financing contingency in their offer. If the buyer cannot secure financing, the contingency allows them to:
- A NH buyer who submits an offer 'as-is' without an inspection contingency assumes the risk of:
- A New Hampshire purchase and sale agreement becomes binding when:
- A New Hampshire listing agreement that has no specified expiration date is:
Practice More New Hampshire Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Hampshire Quiz →