Under the C.A.R. RPA, which of the following is NOT covered under the buyer's investigation contingency?
Correct Answer
C) Verification that the seller holds clear and marketable title to the property
Title verification is covered under a separate title contingency in the C.A.R. RPA, not the buyer's investigation contingency. The RPA provides a distinct contingency for the buyer to review the preliminary title report and approve the condition of title. While the investigation contingency is broadly worded, title review has its own dedicated contingency with its own removal timeline.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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