Contracts
A contingency in a North Carolina real estate contract is best described as:
AA clause that automatically voids the contract
BA condition that must be met for the contract to become binding or for closing to proceed✓ Correct
CA penalty clause for late performance
DA provision that waives the buyer's due diligence rights
Explanation
A contingency is a condition in the contract that must be satisfied for the transaction to proceed; if the contingency fails, the affected party may have the right to terminate.
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Key Terms to Know
Contingency
A 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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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