Escrow & TitleIntermediateAlabama Exam

The doctrine of merger in real estate means that upon closing:

ATwo companies combine into one
BThe purchase contract merges into the deed, which becomes the definitive agreementCorrect
CThe buyer and seller become jointly responsible for all liabilities, as a general rule
DPrior easements are automatically extinguished

Why The purchase contract merges into the deed, which becomes the definitive agreement Is Correct

Answer B: The purchase contract merges into the deed, which becomes the definitive agreement

The doctrine of merger holds that upon closing, the purchase contract is superseded by (merged into) the deed, which becomes the final expression of the parties' agreement.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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