Final answer:
A buyer can revoke their offer to purchase and receive all earnest money back if the seller cannot deliver possession on the agreed date, and this is stated in the terms of the agreement. This must be done through written notice, and upon agreement termination, neither party has liability and all sums are refunded.
Step-by-step explanation:
In the context of a real estate transaction, a buyer can revoke their offer to purchase and receive the entire earnest money back under certain conditions. An example of such a condition is stipulated in a clause that might state that if the seller (OWNER) is unable to deliver possession of the residence to the buyer (RESIDENT) on the agreed date due to reasons such as loss or destruction of the residence, failure of prior residents to vacate, or any other reason, both parties have the right to cancel and terminate the agreement. If this right is exercised, it must be done through written notice to the other party, and upon termination of the agreement, neither party shall have liability to the other, with any sums paid under the Agreement, including earnest money, being refunded in full.
If neither party chooses to cancel the agreement despite the delay in possession, the Agreement remains valid and is prorated starting from the date of actual possession.