If withdrawal occurs after the 28-day period, what is a potential consequence?

If withdrawal occurs after the 28-day period, what is a potential consequence?

• A. The buyer must forfeit the deposit to the seller.
• B. The buyer receives a full refund of all payments.
• C. The seller must transfer ownership regardless.
• D. No further penalties apply and the agreement stands.

Answer: (A)

The key idea is what happens when a buyer pulls out after the initial cooling-off period. That 28-day window is meant to allow a reconsideration without penalties, but once it passes, the purchase becomes binding in practical terms. If the buyer withdraws late, the default consequence is that the deposit paid to reserve the property is forfeited to the seller. This deposit serves as security for the seller, compensating them for the time the property was off the market and for other costs incurred due to the late withdrawal. The other options contradict how late withdrawal is typically treated: a full refund would ignore the breach, the seller isn’t obliged to transfer ownership just because the buyer withdraws, and there are usually penalties or at least the deposit retention rather than the agreement simply standing without consequence.

The key idea is what happens when a buyer pulls out after the initial cooling-off period. That 28-day window is meant to allow a reconsideration without penalties, but once it passes, the purchase becomes binding in practical terms. If the buyer withdraws late, the default consequence is that the deposit paid to reserve the property is forfeited to the seller. This deposit serves as security for the seller, compensating them for the time the property was off the market and for other costs incurred due to the late withdrawal. The other options contradict how late withdrawal is typically treated: a full refund would ignore the breach, the seller isn’t obliged to transfer ownership just because the buyer withdraws, and there are usually penalties or at least the deposit retention rather than the agreement simply standing without consequence.