ContractsEarnest_money_and_escrowMEDIUM
A buyer properly cancels under the inspection contingency. Both parties sign a mutual release. Who receives the earnest money?
Correct Answer
A) The buyer, because cancellation under a valid contingency typically entitles the buyer to a refund
When a buyer properly cancels under a valid contingency, the buyer is typically entitled to a refund of the earnest money.
Answer Options
A
The buyer, because cancellation under a valid contingency typically entitles the buyer to a refundB
The listing agent, as compensationC
The seller, as liquidated damagesD
The escrow company, as a cancellation feeWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Key Terms:
earnest_money_and_escrowcontractsrefundcontingency
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