When a buyer defaults on a Delaware real estate contract, the seller's remedies may include:
Correct Answer
B) Retaining the earnest money deposit, seeking specific performance, or suing for damages
Contract default is a civil matter in Delaware, not a criminal one. When a buyer defaults, the non-defaulting seller may pursue civil remedies including retaining the earnest money deposit as liquidated damages, seeking specific performance to compel the buyer to complete the purchase, or suing for actual damages suffered as a result of the breach.
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Related Topics & Key Terms
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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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