An NC purchase contract includes a contingency that the buyer must sell their current home before closing. If the buyer cannot sell in time, the buyer may:
Why Terminate the contract and (depending on the contingency terms) recover their earnest money Is Correct
Answer B: Terminate the contract and (depending on the contingency terms) recover their earnest money
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
People Also Study
Related North Carolina Questions
- A NC seller who receives an offer during the due diligence period with a contingency to sell their current home is encountering which type of provision?Contracts
- Under the NC Offer to Purchase, if a buyer terminates AFTER the due diligence period without a valid contractual reason, what happens to the earnest money deposit?Contracts
- The NC Offer to Purchase and Contract allows the buyer to terminate during the due diligence period by delivering written termination notice to the seller or seller's agent by:Contracts
- A NC 'swing loan' (bridge loan) is used when a buyer needs to purchase before their current home sells. The risk of this financing strategy is:Finance
- Under NC law, the priority of a purchase money deed of trust (given at time of sale) over other liens is established by:Escrow & Title
- A NC seller's 'right to continue to market the property' during a pending contract with a home sale contingency is known as a:Contracts
- Under the Fair Housing Act, an exemption may apply to a private individual selling their own single-family home WITHOUT an agent IF they:Fair Housing
- A NC broker who deposits a client's earnest money check into their personal account instead of a trust account has committed:North Carolina License Law
Key Terms to Know
A 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.
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.
Math Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →