Peter, the seller, and Sendhil. The buyer, enter into a real estate purchase agreement. The property is put into _ while Sendhil applies for a loan. After Sendhil qualified, he changed his mind. Undoubtedly Peter's recovery would be ____________ based on the _____________ in the
Purchase agreement.
A)escrow, specific performance, coinsurance clause.
B)deposit, compensatory damages, escrow.
C)escrow, liquidated damages, deposit
D)assessment, points, disclosure.

Question

Peter, the seller, and Sendhil. The buyer, enter into a real estate purchase agreement. The property is put into _ while Sendhil applies for a loan. After Sendhil qualified, he changed his mind. Undoubtedly Peter's recovery would be ____________ based on the _____________ in the
Purchase agreement.​
A)escrow, specific performance, coinsurance clause.
B)deposit, compensatory damages, escrow.
C)escrow, liquidated damages, deposit
D)assessment, points, disclosure.

Quizplus · Accepted Answer

Liquidated damages are often specified in the deposit clause of a real estate purchase agreement, providing a predetermined amount of compensation if the buyer breaches the contract.

Peter, the Seller, and Sendhil