Contracts

In South Dakota, a contract for the sale of real estate that contains a 'subject to sale' contingency means:

AThe sale is subject to government approval
BThe buyer's obligation to purchase is contingent on the buyer successfully selling another property within a specified period✓ Correct
CThe seller may cancel if they receive a higher offer
DThe purchase price is subject to adjustment based on appraisal

Explanation

A 'subject to sale' or 'sale of buyer's property' contingency makes the buyer's obligation to purchase contingent on their ability to sell their current home within a specified period. If they cannot sell their home, they may be able to withdraw from the contract without penalty.

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