Question

The seller is allowed to keep the good faith deposit as liquidated damages after a buyer breaches the purchase agreement. Generally, how will the deposit be distributed after costs incurred on the seller's behalf have been paid

Answer 1

the payment is divided equally between the seller and the listing broker.

Step-by-step explanation:

A good faith deposit is the amount of money that a buyer pays upfront when making an offer in order to show the seller that he/she is making a serious offer. This money is placed in an escrow and added to the final payment unless the buyer breaches the offer contract. In which case the payment is divided equally between the seller and the listing broker.