Contracts
If a buyer defaults on a purchase agreement, the seller's options typically include:
AKeeping the earnest money as liquidated damages only
BSuing for specific performance, suing for actual damages, or accepting the earnest money as liquidated damages✓ Correct
CRelisting the property immediately with no other remedy
DForfeiting the earnest money to the buyer
Explanation
When a buyer defaults, the seller typically has multiple remedies: retaining earnest money as liquidated damages, suing for actual damages, or seeking specific performance (court order to complete the purchase).
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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.
Math Concepts
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