If a buyer withdraws from a transaction without a valid reason after signing a sales contract,he typically loses his earnest money.

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Quizplus · Accepted Answer

This is generally true. Earnest money is a sum paid by the buyer to demonstrate that they are serious about the purchase. If the buyer backs out of the transaction for no valid reason, they may forfeit the earnest money as a penalty. However, the legality of this can vary depending on the specific terms of the sales contract and any applicable state laws.

If a Buyer Withdraws from a Transaction Without a Valid