Contracts
In NC, when a seller accepts an offer but the buyer's lender cannot fund the loan on the agreed closing date, and time is of the essence, the most likely outcome is:
AThe contract automatically extends by 30 days
BThe seller may declare the buyer in default and potentially retain the earnest money✓ Correct
CThe lender must extend the rate lock at no cost
DThe NCREC intervenes to resolve the dispute
Explanation
When time is of the essence and the buyer cannot close by the deadline, the buyer may be in default. Depending on the contract terms, the seller may be entitled to retain the earnest money as liquidated damages.
Related North Carolina Contracts Questions
- A NC real estate transaction in which the seller's agent prepares an offer for a buyer (who has no agent) raises concerns about:
- Under the North Carolina Offer to Purchase, the earnest money deposit (EMD) is:
- In North Carolina, the 'due diligence fee' paid at contract execution is:
- Under the NC Offer to Purchase, which party typically pays for the home inspection?
- Under NC contract law, 'time is of the essence' means:
- An addendum to a North Carolina real estate contract:
- A 'counteroffer' in a NC real estate transaction legally constitutes:
- The NC Offer to Purchase includes a 'Settlement Date' that represents:
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