Contracts
A NH purchase and sale agreement specifies that the closing will occur 'on or before June 30.' If the buyer is ready but the seller cannot close until July 5 due to a title issue, the buyer may:
ANot object as 5 days is considered insignificant
BChoose to extend the closing date, terminate the contract, or pursue legal remedies for the seller's breach✓ Correct
CBe required to close on July 5 without remedy
DOnly extend the closing if the seller pays a penalty fee
Explanation
A closing date is a material contract term, especially if 'time is of the essence' is specified. If the seller cannot close by the agreed date, the buyer has options: extend by mutual agreement, terminate the contract and recover the deposit, or pursue legal remedies for breach of contract.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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