If a buyer defaults on a real estate purchase agreement in Iowa, which of the following remedies may the seller pursue?
Correct Answer
B) Retain the earnest money, sue for specific performance, or sue for actual damages
When a buyer defaults on a purchase agreement in Iowa, the seller has several civil remedies available: retaining the earnest money as liquidated damages (if so stipulated), suing for specific performance to compel the buyer to complete the purchase, or suing for actual monetary damages. Breach of contract is a civil matter, not a criminal one, and the seller cannot seize personal property without a court judgment.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
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.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
- → In Rhode Island, a licensee submits a written purchase or lease offer to an owner. Which statement is correct?
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- → Which Rhode Island rule applies when a listing agreement lists property with a multiple listing service?
- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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- → For the Hawaii salesperson state portion, interest accrues on a trust-account deposit. Which statement is correct?
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