A default occurs when a party to the contract doesn’t do something that they have agreed to do under the contract. Examples can include not providing an existing survey, not depositing the earnest money or option fee, or not coming to closing on the closing date. A termination occurs when one party notifies the other party that they are terminating the contract due to a default or some other reason. This video with Republic Title’s Janet Allen and Scott Rooker covers the following key points to know about Terminations and Defaults:
- What is the difference between a default and a termination?
- Once the title company has receive a termination from one side, can they release the earnest money?
- What happens after a party makes a demand for the earnest money?
- What happens if there is a dispute?