A buyer in Dover, NH submits an offer on a lakefront property near Lake Winnipesaukee. The offer is contingent on the buyer's attorney reviewing and approving the title within 10 business days. The seller accepts the offer. On day 8, the buyer's attorney discovers that the property is located within the 250-foot protected shoreland buffer under RSA 483-B and that a prior owner installed a dock without the required NH Department of Environmental Services permit. The buyer's attorney advises the buyer to cancel. Which of the following best describes the buyer's options?
Correct Answer
B) The buyer may cancel under the attorney review contingency and recover the earnest money deposit
The purchase contract includes an attorney review contingency, which gives the buyer's attorney the right to review and approve title and related matters within 10 business days. The discovery of an unpermitted dock within the RSA 483-B shoreland buffer — a significant environmental compliance issue — is a legitimate basis for the attorney to withhold approval. Because the attorney review period has not yet expired (day 8 of 10), the buyer may properly invoke the contingency to cancel the contract and is entitled to the return of the earnest money deposit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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