Which statement best describes Florida's rule on deposit receipt?
Correct Answer
D) A buyer default or seller default does not automatically answer who gets the earnest money; the contract and escrow rules must be applied.
A buyer default or seller default does not automatically answer who gets the earnest money; the contract and escrow rules must be applied. This follows Current Florida residential contract practice; Rule 61J2-14.008, F.A.C.; FREC Real Estate Law Book.
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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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Under Florida law, all of the following would typically survive the closing of a real estate purchase agreement EXCEPT:
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Audit memo Cedar Memo highlights this Florida rule. In a Tallahassee transaction, a closing coordinator wants the Florida rule on deposit receipt. Which statement is correct?