Contracts
A Maine purchase agreement contains a 'survival clause' for the seller's representations about the septic system. This means:
AThe representations expire at closing
BThe representations remain in effect for a specified period after closing✓ Correct
CThe seller must fix the septic before closing
DThe buyer assumes all risk for the septic at closing
Explanation
A survival clause specifies that certain representations or obligations survive the closing and do not merge into the deed. This allows a buyer to pursue claims for misrepresentation about the septic system discovered after closing.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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.
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