Under what condition does a seller have a right to terminate a lease prior to closing?

Get ready for the AceableAgent Promulgated Contracts Test. Practice with multiple choice questions, each offering hints and detailed explanations. Boost your confidence and ace your exam!

A seller has the right to terminate a lease prior to closing if the lease itself contains provisions that allow for such termination. Contracts and leases often outline specific terms under which either party may terminate the agreement, including conditions related to property sales. If the lease permits the seller to terminate it under certain circumstances, then the seller can lawfully do so without legal repercussions. This is crucial because leases are legal agreements that bind the parties to their terms. If those terms include a mechanism for early termination, then the seller can exercise this right.

In contrast, other choices don't provide the seller with the inherent authority to terminate the lease. For example, if the buyer requests termination, it does not necessarily give the seller the right unless such a right is specified in the lease. Similarly, month-to-month leases can indeed be terminated with proper notice, but they do not inherently grant the seller termination rights unless stated otherwise in the lease. Finally, selling the property as-is does not affect the lease terms, as the obligations framed in the lease remain in effect until legally terminated based on its stipulations.

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