Contracts
Under South Carolina law, which party typically has the right to the earnest money if the buyer exercises a valid contingency and terminates the contract?
AThe seller, as damages for inconvenience
BThe buyer, as the contingency condition was not met✓ Correct
CSplit equally between buyer and seller
DThe listing broker as earned compensation
Explanation
If a buyer properly exercises a valid contingency (financing, inspection, appraisal), they are entitled to the return of their earnest money because the condition for termination was properly met.
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