Contracts
In New Jersey, if both parties agree to cancel a real estate purchase contract after attorney review, they should execute a:
ALis pendens
BMutual release agreement returning the deposit to the buyer✓ Correct
CQuitclaim deed
DNew listing agreement
Explanation
When a real estate contract is cancelled by mutual agreement, the parties execute a mutual release (also called a cancellation agreement) that documents the termination and directs the escrow agent on how to distribute the deposit. Without a signed release, the broker cannot release the escrow funds.
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