Contracts

In New York, the concept of 'merger of title' (or merger of contract into deed) at closing means that:

AThe buyer and seller merge their obligations into the closing documents
BContractual obligations that have not been performed at closing may be extinguished (merged into the deed) unless the parties expressly agree to survive closing✓ Correct
CThe deed replaces all prior negotiations automatically
DAll warranties in the contract automatically become deed covenants

Explanation

The doctrine of merger holds that in New York, once a real estate closing occurs and the deed is delivered, the purchase contract 'merges' into the deed — meaning contractual obligations that were not expressly preserved are extinguished. If a seller's pre-closing representations are to remain enforceable after closing, the parties must include a 'survival' clause in the contract specifying which provisions survive closing.

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