In New York, when a real estate purchase contract is signed by both parties, but before any contingencies are satisfied or removed, the contract is considered:
Correct Answer
B) Conditionally binding subject to satisfaction of contingencies
A signed purchase contract with contingencies is conditionally binding. Both parties are obligated to perform their respective duties and allow the other party reasonable opportunity to satisfy the contingencies, but the ultimate obligation to close is conditional upon satisfaction or waiver of all contingencies.
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Previous Question
A New York purchase contract includes the provision: 'Buyer to assume seller's existing mortgage of approximately $180,000.' At closing, the actual mortgage balance is $186,500. The buyer objects to the higher amount. Which statement is most accurate?
Next Question
A New York seller receives two offers on the same day: Offer A for $450,000 with a 30-day closing, and Offer B for $440,000 with a 45-day closing and attorney approval contingency. The seller signs Offer A and then discovers Offer B has better financing terms. Can the seller withdraw from Offer A to accept Offer B?