Contracts
A Virginia purchase contract requires a 10% earnest money deposit. The buyer backs out after the inspection contingency period has expired without cause. The seller typically may:
AOnly recover out-of-pocket costs
BRetain the earnest money as liquidated damages per the contract terms✓ Correct
CSue for the entire profit they expected from the sale
DDemand the buyer purchase the home anyway
Explanation
Many Virginia purchase contracts specify that if the buyer defaults after contingencies expire, the seller may retain the earnest money as liquidated damages. The contract terms govern; the seller may also have the option to sue for actual damages or specific performance.
Related Virginia Contracts Questions
- If a buyer defaults on a Virginia real estate sales contract, the seller's remedy of keeping the earnest money deposit is known as:
- A buyer makes an offer on a Virginia home. Before the seller responds, the buyer attempts to withdraw the offer. Which of the following is true?
- Under Virginia law, a buyer's right to terminate a contract for a new home under the Virginia Condominium Act must be exercised within:
- A Virginia real estate contract includes an 'escape clause' (kick-out clause). This allows the seller to:
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- When does a Virginia buyer's offer become a binding contract?
- A Virginia contract is said to be 'ratified' when:
- A Virginia seller accepts a buyer's offer but the seller had been declared legally incompetent. The resulting contract is:
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