Under the TREC contract, if the buyer fails to deposit the required earnest money within the timeframe specified, this may constitute:
Correct Answer
A) A default under the contract
Failure to deposit earnest money within the required timeframe may constitute a default under the contract. The seller may then exercise default remedies under Paragraph 15.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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