A buyer defaults on a Florida real estate contract after all contingencies have expired. The contract specifies that earnest money will be forfeited as liquidated damages. However, the actual damages to the seller are significantly higher than the earnest money amount. Can the seller pursue additional damages beyond the earnest money?
Correct Answer
B) No, acceptance of earnest money as liquidated damages precludes further claims
Correct: When a contract specifies earnest money as liquidated damages and the seller accepts it, this typically precludes pursuing additional damages. Why not A: Liquidated damages clauses limit the right to pursue actual damages. Why not C: Unconscionability is difficult to prove and not the standard test. Why not D: The contract would need to specifically reserve rights, but this contradicts liquidated damages concept.
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A Florida broker holds $15,000 in earnest money in an interest-bearing escrow account. After 90 days, the transaction closes successfully. Who is entitled to the interest earned on the earnest money?
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A Florida buyer deposits $12,000 earnest money on a $400,000 purchase. At closing, the buyer brings an additional $68,000 as their down payment. What percentage of the purchase price did the buyer put down total?