If title cannot be perfected within that time, the parties whose title is defective shall forfeit the amount deposited by them under this agreement, as liquidated damages. When the abstract or title insurance policy shall have been furnished as above, and time allowed for the examination of it shall have elapsed, the parties agree to immediately execute and deliver the necessary and proper papers that effect the transfer of the above-described properties, and carry out the terms of this agreement. If either party refuses and neglects to do so within _________ days after the time elapses for the examination of the abstract or title insurance, then the earnest money deposited by the defaulting party and receipted for shall be forfeited at the election of the nondefaulting party, and accepted as liquidated damages.

The defaulting party shall further pay to the third parties the full amount of commission agreed to be paid by the parties. If the nondefaulting party elects to accept the forfeiture of the earnest money deposited by the defaulting party as liquidated damage, the earnest money, together with that deposited by the nondefaulting party, shall nevertheless be first used to pay the actual expenses incurred either by the nondefaulting party or the third parties, and the balance of the earnest money so deposited shall be divided equally between the nondefaulting parties and the third parties.