Contracts
An Iowa purchase agreement clause that states 'this offer is contingent upon the sale of buyer's current home' is:
AAutomatically unenforceable in Iowa
BA home sale contingency that protects the buyer but may prompt the seller to include a kick-out clause✓ Correct
CRequired in all Iowa residential purchases
DA violation of IREC regulations
Explanation
A home sale contingency is a common provision that makes the purchase of a new home conditional on the sale of the buyer's existing home. Sellers may respond with a kick-out (right of first refusal) clause allowing them to continue marketing and accept another offer if the buyer cannot remove the contingency.
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