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Contract Pitfalls and Best Practices Review

13 minPRO
6/6

Key Takeaways

  • Specific performance is the preferred remedy in real estate because each property is considered unique.
  • Liquidated damages (typically the earnest money) must be a reasonable estimate of potential damages to be enforceable.
  • Wire fraud prevention requires verbal verification of all wiring instructions at independently confirmed phone numbers.
  • Clear, specific contract language is the single most effective tool for preventing disputes.
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Test Your Knowledge

1.Which remedy forces the breaching party to complete the contract as agreed?

2.What should an escrow agent do when both parties claim the earnest money deposit?

3.What is the most effective way to prevent wire fraud in real estate transactions?

4.For a liquidated damages provision to be enforceable, the specified amount must be: