Contracts
In South Carolina, what happens if both the buyer and seller are in default of a real estate contract?
AThe seller keeps the earnest money
BBoth parties may have claims against each other, and the earnest money disposition depends on the specific circumstances and contract terms✓ Correct
CThe transaction must proceed regardless
DSCREC automatically mediates the dispute
Explanation
When both parties are in default, the situation becomes complex. Each party may have claims against the other.
Related South Carolina Contracts Questions
- In South Carolina, a buyer who defaults on a ratified purchase contract forfeits their earnest money under a 'liquidated damages' clause. This amount must:
- In South Carolina, what is a 'land use restriction agreement' (LURA)?
- In South Carolina, which of the following describes an 'installment sales contract' (land contract)?
- In South Carolina, which of the following is a 'unilateral contract'?
- Which type of listing agreement requires the seller to pay a commission even if the seller finds the buyer themselves?
- In South Carolina, specific performance as a remedy in a real estate contract means:
- What is the significance of the 'inspection contingency' in a South Carolina residential purchase contract?
- In South Carolina, 'rescission' of a real estate contract means:
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →