Contracts
The TREC contract's provision allowing the seller to terminate if the buyer's earnest money is not delivered on time means the seller has:
AAn automatic right to terminate without notice
BThe right to elect to terminate if the buyer fails to timely deliver earnest money, subject to the contract's notice requirements✓ Correct
CThe right to immediately accept the next offer
DNo remedy if the earnest money is only one day late
Explanation
When a buyer fails to timely deliver earnest money, the seller has the right to terminate—but this requires the seller to elect and notify the buyer of the termination in accordance with the contract's provisions. The seller can also choose to waive the breach and proceed with the contract.
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