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A financing contingency in a Missouri contract protects the buyer by:

Correct Answer

B) Allowing the buyer to terminate and recover earnest money if financing cannot be obtained within specified terms

A financing contingency allows the buyer to terminate the contract and receive earnest money back if they cannot obtain the specified mortgage despite good-faith efforts.

Answer Options
A
Guaranteeing loan approval
B
Allowing the buyer to terminate and recover earnest money if financing cannot be obtained within specified terms
C
Requiring the seller to provide financing
D
Extending closing indefinitely

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Related Topics & Key Terms

Related Topics:

contingency clausesearnest money protectioninspection contingencyloan commitmentwaiving contingenciesgood faith efforts

Key Terms:

financing contingencyearnest money recoveryloan approvalcontract terminationbuyer protectiongood faith efforts
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