What options does a seller have if the buyer cannot complete the contract?

When a buyer is unable to complete the contract, the seller has significant options to protect their interests. The correct choice indicates that the seller can cancel the contract and retain the deposit or pursue specific performance.

In real estate transactions, a deposit often serves as a demonstration of the buyer's commitment to proceed with the purchase. If the buyer defaults, the seller can typically retain the deposit as compensation for the inconvenience and potential losses incurred due to the buyer's failure to fulfill their obligations. This serves as a deterrent for buyers to back out of contracts lightly and provides a financial recourse for the seller.

Additionally, the seller may choose to pursue specific performance, which is a legal remedy that compels the buyer to fulfill their end of the contract. This option can be especially relevant in real estate transactions because each property is unique, and monetary damages might not adequately compensate the seller for the loss of the specific property sale.

Other options, such as negotiating for a lower price or waiting indefinitely, do not serve the seller's interests effectively. Negotiating for a lower price might not be relevant if the buyer has already shown a lack of ability to complete the transaction. Waiting indefinitely would also leave the seller without resolution, further perpetuating uncertainty and potentially causing financial strain.