Contracts
A 'contingency' in a North Dakota real estate contract is a condition that:
AMust be satisfied for the contract to become binding on both parties✓ Correct
BAutomatically voids the contract after 30 days
CAllows only the seller to terminate the agreement
DRequires court approval to be valid
Explanation
A contingency is a condition that must be satisfied (or waived) for the contract to proceed to closing. Common contingencies include financing, inspection, and appraisal contingencies.
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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.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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