Real Property Multistate Bar Practice Exam

The correct answer highlights a key principle in real property transactions regarding the nature of liability and the implications of closing. When contracts and deeds are merged after closing, it signifies that the deed serves as the final and complete agreement between the parties regarding the transfer of property. Consequently, the seller's obligation to address issues such as defects or problems encountered by the buyer is effectively limited after the closing, unless there are instances of fraud or willful misrepresentation.

In this context, once the deed is delivered and accepted, it represents a culmination of the contractual obligations previously established. This leads to the conclusion that the seller is no longer liable for any claims that might arise from the condition of the property post-closing, except in cases where the seller has committed fraud or hidden significant defects. This principle promotes finality in property transactions, ensuring that parties can rely on the terms contained within the deed as definitive.

Understanding this principle is fundamental because it clarifies the ongoing responsibilities of each party once a real property transaction has been completed and underscores how the merger doctrine fundamentally alters the scope of liability after closing.