Common use of Purchase Proceeds Clause in Contracts

Purchase Proceeds. Seller may, at Closing, use the purchase money or any portion thereof to clear the title of any or all encumbrances, provided that all instruments releasing such encumbrances are recorded simultaneously with the Closing or arrangements are made for the recording of such releasing instruments within a reasonable period of time following the Closing in accordance with standard conveyancing practice, provided such arrangements are acceptable to the Title Company and the Title Policy does not reflect the existence of any such encumbrances.