Contracts
In Vermont, a 'contingency' in a purchase contract means:
AThe contract is void and unenforceable
BA condition that must be satisfied or waived before the contract becomes fully binding or the transaction can close✓ Correct
CThe buyer has paid a non-refundable deposit
DThe seller can withdraw at any time
Explanation
A contingency is a condition that must be fulfilled for the contract to proceed. Common Vermont contingencies include financing, inspection, and title contingencies.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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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