Contracts

A Massachusetts P&S includes a 'subject to' clause making the contract conditional on the sale of the buyer's current home. This creates what type of condition?

AA condition precedent—the sale must occur before the buyer's obligation to purchase becomes binding✓ Correct
BA condition subsequent—the buyer must purchase first and then sell their home
CA condition of acceptance—the seller accepts conditionally
DA merger clause

Explanation

A home sale contingency is a condition precedent—the buyer's obligation to purchase only becomes binding if the specified event (sale of their current home) occurs. If the condition fails, the contract is discharged.

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