What can be a consequence if a buyer fails to meet deadlines outlined in the purchase contract?

If a buyer fails to meet the deadlines outlined in the purchase contract, one of the primary consequences is the potential loss of their earnest money. Earnest money is a deposit made to demonstrate the buyer's commitment to purchasing the property. The purchase contract typically stipulates specific timelines for actions such as inspections, financing approval, and other contingencies. If the buyer does not adhere to these deadlines, the seller is justified in retaining the earnest money as a form of compensation for the buyer's failure to fulfill their contractual obligations. This serves as a protective measure for sellers, ensuring that they are compensated in case the buyer's inaction leads to a loss of potential sale or delays in the selling process.

The other options do not align with standard real estate practices. For example, a seller raising the property price would typically require a new agreement rather than simply responding to a buyer missing deadlines. The notion of automatically extending the closing date is not typically how such contracts function; extensions often require mutual consent. Additionally, while buyers may seek damages in certain legal contexts, that is not the immediate consequence of failing to meet contract deadlines related to earnest money.