Diane is purchasing a waterfront property on the Chesapeake Bay in Queen Anne's County. Her agent informs her that the property is located within the Chesapeake Bay Critical Area. Diane wants to add a contingency to the contract allowing her to void the deal if she determines the Critical Area restrictions will prevent her planned construction of a boat dock. Which of the following best describes the nature of this contingency?
Correct Answer
B) A zoning and land use contingency, because it is based on regulatory restrictions affecting the buyer's intended use
The Chesapeake Bay Critical Area Act imposes strict land use regulations on properties within 1,000 feet of the Bay or its tributaries, including restrictions on development, impervious surfaces, and vegetation removal. A contingency allowing Diane to void the contract if Critical Area restrictions prevent her planned dock construction is a zoning and land use contingency, because it is based on governmental regulatory restrictions affecting the buyer's intended use of the property. Maryland agents must understand Critical Area restrictions and their impact on property use.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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