Contracts
In NC, the 'integration clause' (merger clause) in a real estate contract means:
AAll parties to the contract must be of the same race
BThe written contract represents the entire agreement between the parties, and prior oral representations are not binding✓ Correct
CAll addenda must be signed by the same person who signed the main contract
DThe contract automatically merges with the closing deed
Explanation
An integration (merger) clause states that the written agreement is the complete and final agreement between the parties, superseding all prior negotiations, representations, and oral agreements. It prevents parties from claiming additional promises were made outside the contract.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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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