Contracts
If a seller dies after accepting a purchase offer but before closing, what happens to the purchase contract?
AThe contract is automatically void
BThe contract generally remains binding on the seller's estate✓ Correct
CThe buyer gets their earnest money back automatically
DThe listing agent assumes the seller's obligations
Explanation
Real estate purchase contracts are generally binding on the parties' estates. If a seller dies, their estate is typically obligated to complete the transaction per the contract terms.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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