Contracts

A 'subject to' clause in a real estate purchase contract typically means:

AThe seller will carry a second mortgage
BThe purchase is contingent upon a specified condition being met✓ Correct
CThe buyer waives all inspections
DThe contract is subject to AREC approval

Explanation

A 'subject to' or contingency clause makes the contract dependent on a specified condition, such as the buyer obtaining financing, the property appraising at value, or the home inspection being satisfactory.

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