Contracts
In North Carolina, if a buyer terminates a contract AFTER the Due Diligence Period expires without a valid contractual reason, they:
AReceive all deposits back
BForfeit only the Due Diligence Fee
CForfeit the Earnest Money Deposit✓ Correct
DFace a lawsuit for specific performance only
Explanation
If the buyer terminates after the Due Diligence Period without a valid reason, the seller is entitled to retain the Earnest Money Deposit as liquidated damages.
Related North Carolina Contracts Questions
- A NC contract for the sale of commercial real estate that is not in writing but is partially performed (e.g., buyer has taken possession and made improvements) may be:
- A NC listing agreement that does not specify an expiration date is:
- Under the North Carolina Offer to Purchase, the earnest money deposit (EMD) is:
- A North Carolina contract is 'executory' when:
- The North Carolina Offer to Purchase and Contract is a standard form approved by:
- The 'Due Diligence Period' in a North Carolina real estate contract allows the buyer to:
- Under the NC Standard Form 2-T, the 'Due Diligence Fee' is paid:
- An 'as-is' sale in North Carolina means:
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