Contracts
What is a 'contingency release' in an Oregon real estate transaction, and what is the significance of the buyer signing one?
AA document releasing the seller from warranty obligations
BA written statement where the buyer waives a contingency, after which they cannot use that contingency to cancel without losing earnest money✓ Correct
COREA's form releasing commission obligations
DA title company confirmation that all contingencies are satisfied
Explanation
When a buyer signs a contingency release (or contingency waiver) in Oregon, they are formally waiving their right to cancel under that specific contingency. After signing, if the buyer attempts to cancel based on the waived contingency, they typically forfeit their earnest money.
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Key Terms to Know
Earnest Money
A 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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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