Escrow & Title
What is 'earnest money forfeiture' in a South Carolina real estate transaction?
AThe buyer voluntarily donates the earnest money to charity
BThe buyer loses the earnest money due to a default on the contract✓ Correct
CThe seller refunds the earnest money after a failed inspection
DThe broker retains the earnest money as their commission
Explanation
Earnest money forfeiture occurs when a buyer defaults on a ratified contract without a valid contingency. The earnest money is retained by the seller as liquidated damages for the breach.
Related South Carolina Escrow & Title Questions
- In South Carolina, what is a 'gap in title'?
- In South Carolina, which party is responsible for paying the deed recording fee at closing?
- In South Carolina, who is typically responsible for paying for the owner's title insurance policy?
- What is the purpose of a HUD-1 Settlement Statement (or Closing Disclosure) in a South Carolina real estate transaction?
- In South Carolina, the Closing Disclosure must be provided to the borrower at least how many business days before closing?
- In South Carolina, property taxes that are unpaid at the time of sale are:
- What is a 'mechanic's lien' in South Carolina real estate?
- What is a 'title commitment' in a South Carolina real estate transaction?
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 →