What does the default clause typically address in a real estate contract?

The default clause in a real estate contract primarily addresses the consequences that arise if one party fails to fulfill their obligations under the contract. This clause is crucial because it outlines what will happen if a party does not meet their contractual duties, such as failing to make a payment or not completing a required action within the specified timeframe. It can detail remedies available to the aggrieved party, such as the right to terminate the contract, seek damages, or enforce performance.

Understanding the nature of a default clause is essential for all parties involved in a real estate transaction, as it helps them gauge the risks associated with the contract and the implications of non-compliance. The other aspects mentioned, such as dispute resolution and mediation preferences, are typically handled in separate clauses and do not directly address the consequences of failing to meet contractual obligations.