A buyer in Caldwell, Idaho makes an offer on a home with a purchase price of $310,000 and includes a $5,000 earnest money deposit. Before the seller responds, the buyer changes her mind and wants to withdraw the offer. Which of the following is the most accurate statement?
Correct Answer
A) The buyer may withdraw the offer at any time before the seller communicates acceptance, and the earnest money must be returned
Under Idaho contract law, an offer may be revoked by the offeror at any time before acceptance is communicated to the offeror. Until the seller accepts and communicates that acceptance, no contract exists and the buyer is free to withdraw. Because no contract was formed, the earnest money must be returned to the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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