Contracts
In Tennessee, a seller who backs out of a signed purchase contract without cause may be subject to:
AOnly losing the earnest money they collected
BA lawsuit for specific performance or damages by the buyer✓ Correct
CA fine from TREC of up to $5,000
DCriminal charges for breach of contract
Explanation
A seller who breaches a purchase contract without legal justification may face a lawsuit for specific performance (court ordering the sale to proceed) or damages (compensating the buyer for losses caused by the breach). Real estate contracts are specifically enforceable because each property is considered unique.
Related Tennessee Contracts Questions
- When a purchase contract requires the buyer to notify the seller in writing that an inspection contingency has been satisfied, and the buyer fails to do so, the contingency is typically:
- In Tennessee, if a buyer's earnest money check is dishonored by the bank, the:
- A Tennessee buyer who receives the Closing Disclosure three days before closing and wants to review it carefully before proceeding should know that:
- In Tennessee, which of the following best describes an 'open listing' agreement?
- In Tennessee, a 'subject to' clause in a purchase contract means the buyer:
- The doctrine of equitable conversion holds that once a real estate purchase contract is signed:
- Under the Tennessee Residential Property Condition Disclosure Act, the seller disclosure must be provided to the buyer:
- A 'deed of correction' is used in Tennessee to:
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