In Illinois, if a buyer defaults on a contract, the seller may typically:
Question & Answer
Review the question and all answer choices
Only sue for specific performance
Specific performance is rarely granted in residential real estate transactions, especially when monetary damages would suffice. Illinois courts generally avoid forcing parties to complete property sales unless the property is truly unique and cannot be adequately compensated with money.
Retain the earnest money as liquidated damages
Force the buyer to complete the purchase
Forcing a buyer to complete the purchase would require specific performance, which Illinois courts typically do not order in standard residential transactions due to the unique nature of real estate and the preference for monetary compensation.
File criminal charges
Criminal charges are inappropriate for contract disputes, which are considered civil matters. Defaulting on a real estate contract does not constitute criminal behavior in Illinois, making this an invalid remedy for the seller.
Why is this correct?
In Illinois, when a buyer defaults, the seller may typically retain the earnest money as liquidated damages. This is the standard remedy provided in most Illinois real estate contracts, allowing the seller to keep the deposit as compensation for the buyer's breach without proving actual damages.
Continue Learning
Explore this topic in different formats
More Contracts Videos
Continue learning with related video lessons
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.