Contracts
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:
AProceed with the closing regardless
BTerminate the contract and (depending on the contingency terms) recover their earnest money✓ Correct
CRequest the seller reduce the price to make up for the buyer's loss
DHave the earnest money automatically applied to the new purchase
Explanation
A home sale contingency allows the buyer to terminate the contract without penalty (and typically recover their earnest money) if they cannot sell their existing home by the deadline, provided the contingency was properly included in the contract.
Related North Carolina Contracts Questions
- Which of the following is NOT an essential element of a valid real estate contract?
- An 'addendum' to a NC real estate contract is a document that:
- In NC, 'liquidated damages' in a purchase contract typically refer to:
- A 'material breach' of a NC real estate contract gives the non-breaching party the right to:
- In North Carolina, the 'due diligence fee' paid at the time of an offer is:
- The 'due diligence period' in a North Carolina purchase contract is the time during which:
- In NC, if the seller accepts an offer and later receives a higher offer, the seller:
- A NC buyer who makes an offer on a property and the seller accepts — then the seller tries to back out without cause — may pursue which remedy?
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