Escrow & TitleIntermediateDelaware Exam

What is the 'doctrine of merger' in Delaware real estate transactions?

AWhen two companies merge, their real estate assets automatically transfer
BUpon closing and delivery of the deed, the purchase contract merges into the deed, terminating most contractual obligationsCorrect
CWhen adjacent parcels under different owners merge into a single parcel
DThe legal combination of a broker's fiduciary duties into one overriding obligation

Why Upon closing and delivery of the deed, the purchase contract merges into the deed, terminating most contractual obligations Is Correct

Answer B: Upon closing and delivery of the deed, the purchase contract merges into the deed, terminating most contractual obligations

The doctrine of merger holds that upon delivery and acceptance of the deed at closing, the purchase contract 'merges' into the deed. Most contractual rights and obligations are extinguished at closing, though provisions intended to survive closing (warranties, representations) may continue.

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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