Contracts
In Oklahoma, a buyer who defaults on a purchase contract after removal of all contingencies will most likely forfeit their:
ADown payment to the lender
BEarnest money to the seller as damages✓ Correct
CClosing costs to the title company
DCommission to the real estate agent
Explanation
When a buyer defaults after contingencies are removed and the contract is firm, the seller's typical remedy under a liquidated damages clause is to retain the earnest money as compensation for the breach.
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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.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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.
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