Contracts
A West Virginia buyer who backs out of a transaction without a valid contractual reason after removing all contingencies may:
ARecover their full earnest money deposit automatically
BForfeit their earnest money and potentially face a lawsuit for damages✓ Correct
CSimply provide 7 days notice without penalty
DRenegotiate the contract terms instead of withdrawing
Explanation
Once all contingencies are removed, both parties are bound to close. A buyer who defaults without contractual cause may forfeit their earnest money and could also be sued for actual damages (e.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
State-Specific Concepts
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