Contracts
A 'subject to' clause in a real estate purchase agreement means:
AThe sale is contingent upon a specific condition being met
BThe seller is subject to the buyer's approval
CThe property is sold subject to an existing easement or covenant
DBoth A and C can be correct depending on context✓ Correct
Explanation
A 'subject to' clause can mean (A) the sale is contingent upon a condition being met (such as financing or inspection), or (C) the buyer takes title subject to an existing encumbrance (such as an existing mortgage or easement). Context determines which meaning applies.
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