Which situation typically allows for a buyer to retain their deposit in a real estate transaction?

Which situation typically allows for a buyer to retain their deposit in a real estate transaction?

• A. Seller refuses to move out
• B. Buyer becomes unqualified for financing
• C. Seller fails to meet conditions of the sale
• D. Buyer changes their mind

Answer: (C)

In a real estate transaction, a buyer typically retains their deposit when the seller fails to meet the conditions of the sale. This situation occurs when the seller does not fulfill agreed-upon terms outlined in the purchase contract. For instance, if the contract specifies that the seller must complete certain repairs or deliver certain documents by a specific date and they fail to do so, the buyer is justified in considering the contract void. In such cases, the buyer may receive their earnest money deposit back as a form of compensation for the seller's non-compliance with the contractual obligations. The other scenarios usually do not warrant the return of the deposit. If the seller refuses to move out after the closing date, the buyer may have legal recourse, but it would not automatically guarantee the return of the deposit unless specific contractual provisions apply. If the buyer becomes unqualified for financing, typically, they may forfeited their deposit due to their inability to proceed with the purchase. Additionally, a buyer simply changing their mind does not entitle them to keep the deposit, as it reflects a voluntary decision rather than a violation of the contract by the seller.

In a real estate transaction, a buyer typically retains their deposit when the seller fails to meet the conditions of the sale. This situation occurs when the seller does not fulfill agreed-upon terms outlined in the purchase contract. For instance, if the contract specifies that the seller must complete certain repairs or deliver certain documents by a specific date and they fail to do so, the buyer is justified in considering the contract void. In such cases, the buyer may receive their earnest money deposit back as a form of compensation for the seller's non-compliance with the contractual obligations.

The other scenarios usually do not warrant the return of the deposit. If the seller refuses to move out after the closing date, the buyer may have legal recourse, but it would not automatically guarantee the return of the deposit unless specific contractual provisions apply. If the buyer becomes unqualified for financing, typically, they may forfeited their deposit due to their inability to proceed with the purchase. Additionally, a buyer simply changing their mind does not entitle them to keep the deposit, as it reflects a voluntary decision rather than a violation of the contract by the seller.