A closing-file reviewer in Concord is answering a client question about due diligence fee, due diligence period, and Effective Date. Which statement best applies under current North Carolina law?
Correct Answer
D) If the seller materially breaches the contract or another listed exception applies, the buyer may be entitled to a refund of the due diligence fee.
If the seller materially breaches the contract or another listed exception applies, the buyer may be entitled to a refund of the due diligence fee.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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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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- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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