Contracts
In NJ, when a seller breaches a purchase contract by refusing to convey, the buyer may elect which remedy INSTEAD of specific performance?
ACriminal prosecution of the seller
BRescission of the contract and return of the earnest money, plus damages for out-of-pocket losses✓ Correct
CAutomatic doubling of the purchase price
DSeizure of the seller's bank accounts
Explanation
If a seller breaches by refusing to close, the buyer may choose rescission (ending the contract) plus return of the deposit and compensatory damages (e.g.
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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.
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