Contracts
In New York, a 'subject to' clause in a purchase offer (e.g., 'subject to buyer's attorney review within 5 business days') creates:
AAn irrevocable offer
BA condition that must be satisfied for the contract to become binding on the party benefiting from the condition✓ Correct
CAn automatic extension of the closing date
DA personal guarantee by the attorney
Explanation
A 'subject to' clause in a New York contract creates a condition precedent — the contract (or a specific obligation) becomes binding only if the condition is satisfied. If the condition is not met, the party benefiting from the condition may be entitled to cancel the contract and recover their deposit.
Related New York Contracts Questions
- Under New York law, a real estate licensee who prepares a purchase contract (rather than an attorney) is:
- Which type of listing gives the broker the LEAST protection?
- In New York, which of the following is a common 'closing cost' paid by the BUYER?
- A counteroffer legally:
- A mortgage contingency in a purchase contract protects the buyer by:
- An 'earnest money deposit' serves to:
- In New York, the period between signing a purchase contract and closing is most commonly used for:
- A walk-through inspection before closing in New York allows the buyer to:
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