Contracts
In NJ, the doctrine of 'merger' at closing means:
ATwo companies combine to form one
BThe purchase contract merges into the deed at closing, extinguishing most contractual provisions not specifically preserved✓ Correct
CThe buyer and seller must attend closing together
DThe attorney review period merges with the inspection period
Explanation
The doctrine of merger provides that at closing, most provisions of the purchase contract are extinguished (merged) into the deed. Promises the seller made in the contract but not incorporated into the deed may not survive closing.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA 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.
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