A North Carolina buyer paid a $1,000.00 due diligence fee directly to the seller and deposited $2,000.00 earnest money with the escrow agent. The buyer timely terminates during the due diligence period for no special seller-breach reason. Under the standard Form 2-T result, how much should ordinarily be refunded to the buyer?
Correct Answer
D) $2,000.00
Use the stated North Carolina formula or contract assumption: During ordinary due diligence termination, seller keeps the $1,000.00 due diligence fee and buyer typically receives the $2,000.00 earnest money back.. That calculation produces the correct amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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