Contracts
In Alaska, a 'title contingency' in a purchase agreement allows the buyer to cancel if:
AThe title company charges excessive fees
BThe title examination reveals defects or encumbrances that the seller cannot or will not cure✓ Correct
CThe buyer finds a different property they prefer
DThe closing date is delayed
Explanation
A title contingency protects the buyer by allowing them to cancel the contract if the title examination reveals title defects, encumbrances, or other issues that the seller cannot or will not resolve before closing. The buyer is entitled to receive clear, marketable title as a condition of their purchase obligation.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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