What should a buyer do if the seller defaults on the sale?

What should a buyer do if the seller defaults on the sale?

• A. Buyer can request a lower purchase price
• B. Buyer can ask for the return of the deposit
• C. Buyer must proceed with the sale
• D. Buyer can cancel the contract without penalties

Answer: (B)

When a seller defaults on a sale, the buyer is typically entitled to the return of any deposits made during the transaction. This is because the seller’s failure to comply with the terms of the sale contract means that the buyer has not received the service or product for which they paid. In real estate transactions, deposits are generally seen as good faith funds that demonstrate the buyer's intention to follow through with the purchase. If the seller defaults, the buyer can seek to recover this money as a remedy for the breach of contract. The other options present scenarios that are not typically available to the buyer in the event of a seller default. Requesting a lower purchase price does not address the immediate legal standing or financial interests of the buyer if the seller has defaulted. Proceeding with the sale is contrary to the buyer's rights since a default means the seller is unable or unwilling to fulfill their contractual obligations. Similarly, while cancellation of the contract without penalties might seem appealing, it is not always a guarantee, as specific terms and local laws would govern the resolution of such defaults, often making the recovery of deposits the most decisive option available under these circumstances.

When a seller defaults on a sale, the buyer is typically entitled to the return of any deposits made during the transaction. This is because the seller’s failure to comply with the terms of the sale contract means that the buyer has not received the service or product for which they paid. In real estate transactions, deposits are generally seen as good faith funds that demonstrate the buyer's intention to follow through with the purchase. If the seller defaults, the buyer can seek to recover this money as a remedy for the breach of contract.

The other options present scenarios that are not typically available to the buyer in the event of a seller default. Requesting a lower purchase price does not address the immediate legal standing or financial interests of the buyer if the seller has defaulted. Proceeding with the sale is contrary to the buyer's rights since a default means the seller is unable or unwilling to fulfill their contractual obligations. Similarly, while cancellation of the contract without penalties might seem appealing, it is not always a guarantee, as specific terms and local laws would govern the resolution of such defaults, often making the recovery of deposits the most decisive option available under these circumstances.