Contracts
Under New York law, an 'integration clause' (also called a merger clause) in a purchase contract states that:
AAll prior negotiations and representations are superseded by the written contract, which represents the entire agreement of the parties✓ Correct
BThe parties must integrate their escrow accounts
CThe buyer must integrate (combine) all financing sources
DThe title company is integrated into the transaction
Explanation
An integration (merger) clause provides that the written contract represents the complete and final agreement of the parties, superseding all prior negotiations, representations, and agreements not incorporated into the written document.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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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