If the buyer breaches the contract without a valid legal contingency, you keep the full 10% deposit as liquidated damages. This is predetermined compensation for your time off-market, carrying costs, and marketing expenses - no lengthy litigation required. Protect this clause fiercely during attorney review. If the buyer's attorney tries to cap or weaken it, your counsel must push back to maintain maximum buyer commitment.
From the seller playbook: Earnest Money Risk Protection
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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