When a buyer defaults on a contract, what is the seller's primary remedy?

In the event that a buyer defaults on a contract, the seller's primary remedy is typically to keep the earnest money deposit. This deposit serves as a form of security for the seller and is often used to compensate the seller for the loss of time and potential opportunities to sell the property to other buyers. The earnest money is a demonstration of the buyer's commitment to the transaction, and if they fail to fulfill their obligations under the contract, the seller may retain this deposit as compensation.

While other remedies, like suing for specific performance, may also be available to sellers, those options are more commonly pursued in cases where the seller is seeking to enforce the contract instead of simply wanting to keep the initial earnest money. Additionally, releasing the buyer from the contract or re-listing the property immediately may not necessarily provide the seller with any financial recourse and might not be prioritized over the retained deposit. Therefore, keeping the earnest money deposit aligns most closely with the primary remedy that sellers pursue in the event of a buyer's default.