All of the following situations would require a Florida broker to return earnest money to the buyer EXCEPT:
Correct Answer
D) Buyer decides they no longer want the property after all contingencies expire
Correct: If the buyer simply decides they no longer want the property after contingencies expire, this is a default and earnest money would typically be forfeited, not returned. Why not A: Proper cancellation during inspection period requires return of earnest money. Why not B: Failure to obtain specified financing typically allows return of earnest money. Why not C: Seller's inability to provide clear title typically requires return of earnest money.
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- → In Florida, the inspection period is typically:
- → A buyer signs a Florida purchase contract for a condo and learns during the inspection period about a special assessment of $10,000. The seller knew but didn't disclose this. What are the buyer's rights?
- → A buyer and seller in Florida agree to extend the closing date by 10 days. The original contract had a 'time is of the essence' clause. What must they do to make this extension valid?
- → In Florida real estate contracts, what legal principle requires that both parties exchange something of value?
- → A Florida real estate licensee prepares a purchase agreement that includes a financing contingency. The buyer fails to apply for financing within the specified timeframe. What is the legal consequence under Florida contract law?
- → Under Florida law, all of the following would typically survive the closing of a real estate purchase agreement EXCEPT:
- → A Florida purchase contract includes an appraisal contingency stating the property must appraise for at least the purchase price of $350,000. The appraisal comes in at $340,000. What options does the buyer have?
- → A Florida real estate purchase contract includes a financing contingency requiring loan approval within 30 days. On day 28, the buyer hasn't received approval but hasn't notified the seller. What is the buyer's status?
- → In a Florida real estate transaction, the purchase agreement includes a mortgage contingency clause. The buyer receives a loan commitment letter with an interest rate 0.5% higher than specified in the contract. What are the buyer's rights?
- → A Florida real estate broker prepares a purchase agreement that incorrectly states the lot size as 15,000 sq ft when it's actually 12,000 sq ft. The error is discovered after contract execution but before closing. What is the buyer's most likely remedy?
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Previous Question
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?
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A Florida real estate broker receives competing offers on a property. Offer A includes $5,000 earnest money, and Offer B includes $10,000 earnest money. Both offers are for the same purchase price with similar terms. How should the broker advise the seller regarding the earnest money amounts?