When a buyer does not fulfill their obligations as outlined in a real estate purchase agreement, one common outcome is the potential loss of their earnest money deposit. This deposit is typically made to demonstrate the buyer’s commitment to the transaction and serves as security for the seller in case the buyer defaults. The seller may be entitled to retain this deposit as a form of compensation for the breach of contract, especially if the buyer fails to complete the transaction without a legally justifiable reason.
This outcome serves as a protective measure for sellers and encourages buyers to follow through with their commitments. Retaining the earnest money deposit is one of the legal remedies available to the seller, while other options, such as suing for damages, are also possible but are not immediate steps required by the seller.
The other choices reflect misunderstandings of the contractual obligations: suing for damages is a possible course of action but not an immediate requirement; the contract does not automatically void without addressing the breach; and there are indeed consequences for breach, making the idea that there are none for the buyer inaccurate. Thus, the loss of the earnest money deposit is a well-established consequence of defaulting on the agreement.