New Jersey Real Estate License Exam Practice Question
Several sellers accept an offer that is subject to the sale of the buyer's present home. To avoid waiting around forever, they can insist that the contract include
Correct Answer: A
Rationale: An escape clause allows sellers to back out of the contract if the buyer's home does not sell within a specified timeframe, ensuring they can move forward with other potential buyers.
Option B, a contingency for buyer's financing, focuses on the buyer's ability to secure funds, not the sale of their current home.
Option C, provision for liquidated damages, relates to penalties if the contract is breached, which does not address the sellers' need for flexibility regarding the buyer's home sale.
Option D, an earnest money deposit, secures the buyer's commitment but does not provide a solution for the sellers' concerns about waiting.
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