Contracts
In NJ, a 'contingency removal' in a purchase contract happens when the buyer or seller:
AFiles a legal motion
BFormally notifies the other party in writing that a specified contingency condition has been satisfied or waived✓ Correct
CAutomatically happens at closing
DIs performed by the escrow agent
Explanation
A contingency is removed when the protected party provides written notice that the condition has been satisfied (e.g.
People Also Study
Related New Jersey Questions
- In NJ, which party typically has the right to waive a contingency in a purchase contract?Contracts
- A contract contingency for mortgage financing protects the buyer by:Contracts
- Assignment of a purchase contract transfers the buyer's contractual rights to a third party. The original buyer:Contracts
- In NJ, an inspection contingency in a residential contract typically allows the buyer to:Contracts
Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Earnest MoneyA 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.
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →