In Alaska, a 'title contingency' in a purchase agreement allows the buyer to cancel if:
Why The title examination reveals defects or encumbrances that the seller cannot or will not cure Is Correct
Answer B: The title examination reveals defects or encumbrances that the seller cannot or will not cure
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
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.
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Key Terms to Know
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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