Contracts
In NJ, a 'side agreement' (also called a 'side letter') in a real estate transaction that is not disclosed to the lender could constitute:
AA normal part of negotiations
BMortgage fraud if it misrepresents material terms of the transaction to the lender✓ Correct
CAn acceptable variation of the purchase contract
DOnly a technical RESPA disclosure issue
Explanation
An undisclosed side agreement that changes material terms (e.g.
Related New Jersey Contracts Questions
- In NJ, which party typically has the right to waive a contingency in a purchase contract?
- During the NJ attorney review period, which party may cancel the contract?
- New Jersey is considered an 'attorney closing state,' which means:
- In NJ, a contract may be rendered voidable due to:
- A NJ 'right of rescission' is provided to buyers under which specific NJ law for new condominium purchases?
- A liquidated damages clause in a NJ real estate contract specifies:
- A 'contingency' in a NJ real estate contract means:
- The NJ standard attorney review period of 3 business days begins from:
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