A New Hampshire purchase and sales agreement contains a clause stating: 'This agreement is contingent upon the property being located outside the 250-foot shoreland protection zone as defined under RSA 483-B.' A survey reveals the rear of the property extends 180 feet from the high water mark of a public lake. How does this finding affect the contract?
Correct Answer
B) The contingency is not satisfied because the property is within the 250-foot shoreland protection zone, giving the buyer the right to terminate.
RSA 483-B (the NH Shoreland Water Quality Protection Act) establishes a 250-foot protected shoreland buffer from public waters. Since the property extends only 180 feet from the high water mark, it is within the 250-foot protected zone. The contingency was specifically written to allow the buyer to exit if the property fell within this zone. Because the condition stated in the contingency (property located outside the 250-foot zone) is not met, the buyer has the right to terminate the agreement and recover the earnest money deposit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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