Contracts
Under Kentucky law, the doctrine of merger holds that after closing:
AThe purchase contract merges with the deed and the contract terms no longer apply✓ Correct
BThe seller's and buyer's obligations merge equally
CThe commission is merged into the closing costs
DThe escrow account merges with the broker's account
Explanation
The doctrine of merger holds that once a deed is delivered and accepted at closing, the terms of the purchase contract merge into the deed and can no longer be enforced independently.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Math Concepts
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