ContractsEarnest_money_and_escrowEASY
When a buyer refuses to complete a purchase after signing, earnest money typically goes to:
Correct Answer
D) Seller
If a buyer defaults on the purchase contract without a valid contingency, the earnest money is typically forfeited to the seller as liquidated damages.
Answer Options
A
BuyerB
Split between escrow/sellerC
Escrow companyD
SellerVideo Explanation2 min
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Related Topics & Key Terms
Related Topics:
real-estate-contract-contingenciesliquidated-damages-in-real-estateearnest-money-agreements
Key Terms:
earnest moneyliquidated damagesbuyer defaultpurchase contractbreach of contract
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