Contracts
In an Oregon purchase agreement, a buyer includes a 'sale of buyer's home contingency.' What does this mean?
AThe buyer must sell their current home before the purchase is binding✓ Correct
BThe seller must buy the buyer's home as a condition
CThe buyer may cancel only if their home sells at a loss
DThe purchase price is contingent on the value of the buyer's home
Explanation
A sale contingency means the purchase of the new property is contingent upon the buyer successfully closing the sale of their existing home. If the buyer's current home does not sell by the specified deadline, the buyer can typically terminate without forfeiting earnest money. Sellers may include a 'kick-out clause' allowing them to continue marketing.
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