Contracts

In Michigan, a 'rezoning contingency' in a commercial purchase agreement protects the buyer by:

AAutomatically rezoning the property after closing
BAllowing the buyer to void the contract if the requested rezoning is denied before closing✓ Correct
CRequiring the seller to pay for the rezoning application
DGuaranteeing the property will be rezoned

Explanation

A rezoning contingency allows a commercial buyer to void the contract and recover earnest money if the necessary rezoning for their intended use is denied or not granted within the specified period, protecting against purchasing property that cannot be used as planned.

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