Survival clause

The full definition

The contract provision that carries specified representations past the closing. Without it, the doctrine of merger extinguishes most representations when the deed is delivered.

Which related terms should you know?

These are the terms that come up alongside survival clause in the same file.

Escrow (at closing)

Funds or documents held by a neutral party until stated conditions are satisfied. At a New York closing it usually means a holdback from proceeds under a written escrow agreement.

Closing statement

The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.

Marketable title

Title a reasonable buyer would accept, free of defects that would expose that buyer to litigation. Most New York contracts require the seller to convey it at closing.

Deed

The instrument that conveys real property. Signature, acknowledgment and delivery make it effective between the parties, while recording is what protects it against later purchasers.

Title exception

A matter the title policy does not insure against, listed on Schedule B. Some exceptions are removed before closing and others are simply accepted by the buyer.

What else should you read before closing?