Under the CREC Contract to Buy and Sell Real Estate, which of the following is NOT a remedy available to a non-defaulting seller when the buyer has materially breached the contract?
Correct Answer
D) Automatically voiding the contract and receiving double the earnest money as a statutory penalty
There is no Colorado statute or CREC contract provision that automatically voids a contract and awards the seller double the earnest money as a statutory penalty upon buyer breach. This remedy does not exist under Colorado real estate contract law. The CREC contract provides for liquidated damages (earnest money retention), specific performance, or actual damages — not automatic doubling penalties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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