Check Your Understanding Answers
- What information is included in the price and terms provision?
Final price, down payment, and financing information
- What does the escrow clause in a sales contract do?
It provides for the custody and disbursement of the earnest money deposit, and it releases the escrow agent from certain liabilities in the performance of escrow duties.
- What does a right of rescission clause set forth?
It provides buyers the right, under certain conditions, to rescind the sale contract and re-claim their deposits if sellers fail to complete and deliver the property condition disclosure statement to buyers in a timely fashion. Buyer must follow certain procedures and meet certain deadlines in order to legitimately effect the cancellation.
- What does a due-on-sale clause say?
The parties state their understanding that loans that survive the closing may be called due by the lender. Both parties agree to hold the other party harmless for the consequences of an acceleration of the loan.
