Contracts

In New York, a 'contract contingent upon the sale of the buyer's current home' means:

AThe buyer must sell their current home before the contract becomes effective
BThe contract is binding but may be cancelled by the buyer if their current home does not sell within the specified contingency period✓ Correct
CThe buyer's current home is automatically used as security for the new purchase
DThe seller must wait indefinitely for the buyer to sell

Explanation

A home sale contingency in a New York contract makes the buyer's obligation to purchase conditional on the successful sale of their current home within a specified time period. If the buyer's home does not sell in time, the buyer may cancel the contract and receive their deposit back.

Related New York Contracts Questions

Practice More New York Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New York Quiz →