A training instructor in New Bern is sorting out a file issue involving breach remedies, termination, and refunds. Which statement best applies under current North Carolina law?
Correct Answer
A) If the buyer terminates during the due diligence period in the ordinary way, the seller generally keeps the due diligence fee while the earnest money is typically refunded to the buyer.
If the buyer terminates during the due diligence period in the ordinary way, the seller generally keeps the due diligence fee while the earnest money is typically refunded to the buyer.
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Related Topics & Key Terms
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?
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