Contracts
In Vermont, a buyer who breaches a purchase contract by refusing to close may forfeit:
ANothing, as contracts are not enforceable
BThe earnest money deposit as liquidated damages, per the contract terms✓ Correct
CTheir right to purchase real estate in Vermont for 5 years
DTheir real estate agent's license
Explanation
When a buyer breaches a purchase contract, the seller may retain the earnest money as liquidated damages (if so specified in the contract). The seller may also seek specific performance or actual damages, depending on the contract terms and circumstances.
Related Vermont Contracts Questions
- A Vermont real estate purchase contract requires the buyer to obtain written financing approval by a specific date. If the buyer fails to secure financing by that date and the contract has a financing contingency, the MOST LIKELY outcome is:
- Vermont's 'backup offer' in a multiple-offer situation means:
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