Contracts
In South Carolina, what happens to the earnest money if the seller defaults on a purchase contract?
AThe seller always keeps the earnest money
BThe buyer is typically entitled to a return of the earnest money and may have additional remedies✓ Correct
CThe earnest money is forfeited to SCREC
DThe earnest money is split equally between buyer and seller
Explanation
If the seller defaults, the buyer is typically entitled to the return of the earnest money. Additionally, the buyer may seek other remedies such as specific performance (forcing the sale) or damages for losses suffered.
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