Contracts
In Oregon, what is the effect of including a 'survival clause' in a real estate purchase contract?
AIt extends the contract indefinitely
BIt specifies that certain warranties, representations, or obligations survive the closing and remain enforceable after title transfers✓ Correct
CIt prevents either party from canceling the contract
DIt automatically converts to a lease if the sale does not close
Explanation
A survival clause specifies that certain provisions — representations, warranties, indemnifications, or obligations — survive closing and remain binding even after the deed is delivered and title transfers. Without a survival clause, contractual obligations may merge into the deed upon closing. Sellers' representations about property condition often include survival clauses to protect buyers.
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