Contracts

An Iowa seller who dies after accepting a purchase agreement but before closing—does the contract:

AAutomatically terminate upon the seller's death
BGenerally remain binding on the seller's estate✓ Correct
CTransfer only if the buyer and heirs agree
DRequire court approval to proceed

Explanation

A purchase agreement is generally binding on the seller's estate. The estate, through the personal representative, typically must honor the contract unless there are specific reasons for termination.

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