Contracts
A 'subject to' clause in a Georgia real estate contract typically means:
AA. The sale is conditioned upon a future event such as financing approval✓ Correct
BB. The property is subject to condemnation
CC. The contract is subject to verbal modification
DD. The seller will accept any offer subject to their review
Explanation
A 'subject to' clause creates a contingency — the contract is conditioned on a specified event (e.g.
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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.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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