A Florida purchase contract contains a 'time is of the essence' clause. The closing date is set for June 15. The buyer's lender delays funding until June 16. What is the likely result?
Correct Answer
B) The buyer is in breach and may lose their deposit
Correct: B - With a 'time is of the essence' clause in Florida, failure to close on time is a breach that may result in deposit forfeiture. Why not A: The seller is not obligated to accept delays when time is of the essence. Why not C: No automatic extensions apply. Why not D: No automatic reset occurs.
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