Contracts Practice Question | Real Estate Exam | EstatePass

Contracts

When a buyer refuses to complete a purchase after signing, earnest money typically goes to:

A

Buyer

B

Split between escrow/seller

C

Escrow company

D

Seller

Explanation

If a buyer defaults on the purchase contract without a valid contingency, the earnest money is typically forfeited to the seller as liquidated damages.

More Contracts Questions

Which of the following is NOT a requirement for a valid real estate contract?

An offer to purchase real estate is terminated by all of the following EXCEPT:

Earnest money in a real estate transaction serves to:

A bilateral contract is one in which:

The statute of frauds requires that:

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