Remi offered to purchase Vera's house for $350,000. He paid the earnest money but couldn't get enough for the down payment by the closing date. Where will the earnest money go now?

In this scenario, Remi's inability to secure enough funds for the down payment by the closing date constitutes a breach of the contract. When an earnest money deposit is made, it is typically held in good faith to show the buyer's commitment to the transaction. However, if the buyer fails to fulfill their obligations as stipulated in the contract—such as being unable to come up with the necessary funds—the seller is often entitled to the earnest money as compensation for the potential loss and inconvenience caused.

The intention of the earnest money is to protect the seller's interests in the event that the buyer does not follow through on the purchase. Thus, in this situation where Remi did not meet the conditions for closing due to financial constraints, Vera can rightfully keep the earnest money as it serves as a safeguard against the breach of contract. This creates a financial incentive for the buyer to honor their commitments and follow through with the sale.