Contracts
In Michigan, a purchase agreement that contains a 'survival clause' means:
AThe contract can be terminated without penalty
BSpecified representations or obligations survive the closing and are not merged into the deed✓ Correct
CThe seller must survive until closing for the contract to be valid
DThe buyer's earnest money survives if the deal falls through
Explanation
A survival clause in a Michigan purchase agreement specifies that certain representations, warranties, or obligations survive the closing and are not extinguished by the doctrine of merger into the deed, allowing parties to enforce those terms post-closing.
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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.
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.
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