Final answer:
True, purchase contracts often contain conditions that must be removed for the sale to proceed. These conditions are known as contingencies and are included to protect both the buyer and the seller.
Step-by-step explanation:
True, purchase contracts often contain conditions that must be removed for the sale to proceed. These conditions are known as contingencies and are included to protect both the buyer and the seller. Examples of common contingencies include financing contingency, home inspection contingency, and appraisal contingency.
The purpose of these contingencies is to allow either party to back out of the sale if certain conditions are not met. For example, if the buyer is unable to secure financing within a specified time frame, they can terminate the contract without penalty. Once all the contingencies are satisfied or waived, the sale can proceed.
It's important for buyers and sellers to carefully review and negotiate the conditions and contingencies included in the purchase contract to ensure they align with their needs and protect their interests.