Contracts
Liquidated damages in a Wisconsin real estate contract typically refers to:
ACommission paid to the broker
BEarnest money retained by the seller as agreed damages if the buyer defaults✓ Correct
CThe seller's legal fees if the buyer cancels
DA penalty set by DSPS for contract violations
Explanation
Liquidated damages are pre-agreed damages specified in the contract. In Wisconsin real estate, the WB-11 may provide that the seller retains the earnest money as full compensation if the buyer defaults, rather than pursuing additional damages.
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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.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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