A North Carolina buyer paid a $500.00 due diligence fee directly to the seller and deposited $5,000.00 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
C) $5,000.00
Use the stated North Carolina formula or contract assumption: During ordinary due diligence termination, seller keeps the $500.00 due diligence fee and buyer typically receives the $5,000.00 earnest money back.. That calculation produces the correct amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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