A North Dakota real estate licensee is reviewing a purchase agreement for a residential property in Grand Forks. Which of the following items, if discovered during the transaction, would NOT give the buyer a right to terminate the purchase agreement and recover the earnest money under a standard North Dakota purchase agreement?

Correct Answer

D) The buyer finds a different property they prefer and wishes to purchase it instead of the contracted property

A buyer's preference to purchase a different property is NOT a legally recognized basis for terminating a purchase agreement and recovering earnest money under North Dakota law. A change of heart or the discovery of a more desirable property is not a contingency or a legal defect in the contract. The buyer would be in default if they attempted to terminate on this basis, and the seller would be entitled to retain the earnest money as liquidated damages (if the contract so provides) or pursue other remedies.