In an earnest money contract, what can neither party claim?

In an earnest money contract, neither party can claim specific performance or damages because the primary purpose of the earnest money is to demonstrate the buyer's good faith intent to complete the purchase. If the buyer fails to follow through, the earnest money may be forfeited to the seller as compensation. However, in most earnest money agreements, parties typically agree that if the contract is not fulfilled as specified, neither side can pursue legal remedies such as forcing the other to comply with the contract (specific performance) or seeking financial compensation (damages). This provision protects both parties from lengthy and costly disputes regarding the contract execution.

The other options pertain to rights or claims that could be made under different circumstances. Title to the property is contingent upon the successful completion of the transaction. A refund of the earnest money could be possible under certain conditions, depending on the terms agreed upon in the contract, such as contingencies being met. Property inspections are generally part of the process of due diligence in the transaction and do not fall into a claim that either party could make regarding failure of the contract itself.