Contracts

In NJ, a 'hold harmless' clause in a real estate contract typically:

AHolds the broker harmless from any commission claims
BProtects one party from liability for specified actions or events caused by the other party✓ Correct
CPrevents the buyer from rescinding the contract
DExtends the attorney review period

Explanation

A hold harmless (indemnification) clause in a NJ real estate contract shifts the risk of certain specified losses or liabilities from one party to the other, with the party being held harmless protected from claims arising from the other party's conduct.

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