Contracts
In Washington, a buyer exercises their due diligence contingency and terminates the purchase agreement within the due diligence period. The earnest money is:
AForfeited to the seller
BReturned to the buyer✓ Correct
CSplit equally between buyer and seller
DHeld by escrow until the dispute is resolved
Explanation
When a buyer properly exercises a due diligence or inspection contingency within the specified period, they are entitled to a full refund of their earnest money deposit. This is the primary purpose of the contingency.
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