Contracts
In Oregon, the term 'earnest money' and 'deposit' are:
ALegally distinct with different legal implications
BOften used interchangeably to refer to the good-faith deposit accompanying a purchase offer✓ Correct
CEarnest money is paid at closing; deposits are made at the time of offer
DOnly required in commercial transactions
Explanation
Earnest money and deposit are generally used interchangeably in Oregon real estate practice to refer to the good-faith payment made by a buyer when submitting a purchase offer. The amount is applied toward the purchase price at closing.
Related Oregon Contracts Questions
- In Oregon, when a real estate broker drafts an offer using pre-approved forms, they are:
- An Oregon purchase and sale agreement is deemed accepted when:
- In Oregon, a buyer who defaults on a purchase contract may be sued by the seller for:
- In Oregon, 'earnest money' is typically applied to which of the following at closing?
- An Oregon purchase contract specifies that the earnest money will be retained by the seller as liquidated damages if the buyer defaults. Liquidated damages clauses are enforceable in Oregon when:
- A contract contingency that protects the buyer if they are unable to obtain financing is called a:
- An Oregon real estate purchase agreement has an inspection contingency that expires on a specific date. If the buyer fails to act (neither approves nor objects) by the deadline, the most common interpretation is:
- An Oregon buyer submits an offer with a 10-day inspection contingency. On day 10, the buyer's inspector delivers a report, but the buyer's agent forgets to respond before the deadline. What happens to the contingency?
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