Contracts
A Louisiana purchase agreement states the closing must occur 'on or before' a certain date. If the seller is not ready to close on that date due to title issues, what typically happens?
AThe buyer must wait indefinitely
BThe buyer may terminate the contract or agree to extend the closing date✓ Correct
CThe contract automatically extends for 30 days
DThe seller forfeits the earnest money
Explanation
If the seller cannot close by the contract deadline, the buyer generally has the option to terminate and receive the earnest money back, or to agree to extend the closing date. The specific remedies depend on the contract language.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
Math Concepts
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