Contracts

A Wisconsin buyer exercises their right of rescission under a financing contingency. The seller is entitled to:

AKeep the earnest money as damages
BReturn of the earnest money to the buyer if the contingency conditions were properly met and the contract properly voided✓ Correct
CSue for specific performance
DFile a DSPS complaint against the buyer

Explanation

When a buyer properly voids a contract under a valid contingency (such as a financing contingency), the earnest money must be returned to the buyer. The seller has no claim to it when the contract was lawfully rescinded.

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