In a New York residential transaction, the purchase contract includes a provision stating 'This contract is subject to buyer's attorney approval within 5 business days.' The buyer's attorney is unavailable and cannot review the contract within this timeframe. What happens to the contract?
Correct Answer
C) The contract automatically becomes binding since the buyer failed to disapprove within the timeframe
In New York, attorney approval contingencies typically operate as 'approval' rather than 'disapproval' clauses, but when structured as shown, failure to disapprove within the specified timeframe results in the contingency being satisfied, making the contract binding on both parties.
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Previous Question
A New York purchase contract specifies that the buyer will receive a credit of $3,000 at closing for carpet replacement. After contract signing, the buyer discovers the carpets are in better condition than expected and requests to apply the credit toward other closing costs instead. The seller objects. Which statement is correct?
Next Question
A buyer in New York wants to include a home inspection contingency in their purchase offer. The inspection reveals minor cosmetic issues but no major defects. The buyer decides they no longer want the property and attempts to cancel based on the inspection contingency. Which statement is correct?