Contracts
In Delaware, 'rescission' of a real estate contract means:
AOne party sues the other for breach
BThe contract is cancelled and both parties are restored to their original positions✓ Correct
CThe contract terms are modified by mutual agreement
DThe closing date is extended by the parties
Explanation
Rescission cancels the contract and restores both parties to their pre-contract positions (including return of the earnest money deposit). It may occur by mutual agreement or by court order.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
State-Specific Concepts
Escrow Disputes
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