Contracts

A 'merger doctrine' in Pennsylvania real estate law states that when a deed is delivered at closing:

AThe buyer's and seller's interests merge into joint ownership
BAll prior agreements merge into the deed — the Agreement of Sale is typically superseded by the deed✓ Correct
CThe mortgage and deed merge into a single instrument
DAll contingencies automatically become binding on future owners

Explanation

The merger doctrine holds that the Agreement of Sale merges into the deed upon closing — the deed supersedes the prior contract. After closing, buyers generally cannot sue under the Agreement of Sale for matters that could have been discovered before closing.

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