Winston Salem | True Or False Regarding Contract to Purchase

 

 

Question

Under the Offer to Purchase and Contract (Form 2-T), if a party fails to perform a contractual obligation prior to closing, that obligation remains binding on them after closing. True or False?

Answer

False, unless the parties agree in writing that the obligation remains binding after closing or the obligation is, by its nature, one that must be performed after closing. See paragraphs 4(h) and 18 of Form 2-T. Virtually all obligations imposed on the parties by Form 2-T may be performed prior to closing. Those obligations do NOT survive closing unless the parties agree otherwise.