Contracts
What is a 'release of contingency' in an Illinois real estate transaction?
AThe seller's right to void the contract at any time
BA written document signed by the protected party waiving a contingency and proceeding with the contract without that protection✓ Correct
CAn automatic expiration of a contingency after 30 days
DA lender's approval letter that releases the buyer from the financing contingency
Explanation
A release of contingency is a written document by which the party protected by a contingency waives that protection and agrees to proceed with the contract. For example, after a satisfactory home inspection, the buyer signs a release of inspection contingency.
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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.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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.
Math Concepts
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