A Michigan buyer's agent is explaining contingencies to first-time homebuyers. All of the following are common contingencies found in Michigan residential purchase agreements EXCEPT:
Correct Answer
C) A contingency requiring the seller to obtain a new survey paid for by the buyer's lender
A contingency requiring the seller to obtain a new survey paid for by the buyer's lender is not a standard contingency in Michigan residential purchase agreements. Survey requirements, when they arise, are typically addressed in the closing requirements or lender conditions — not as a buyer-protective contingency that allows contract termination. Standard contingencies in Michigan purchase agreements are financing, inspection, appraisal, and sale contingencies.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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.
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