A financing contingency in a Montana purchase contract primarily protects the buyer by allowing them to:
Correct Answer
B) Cancel the contract and receive an earnest money refund if financing is not obtained
A financing contingency protects the buyer by making the purchase contract conditional upon the buyer obtaining an approved loan. If the buyer is unable to secure financing within the specified timeframe, the contingency allows the buyer to cancel the contract and receive a full refund of their earnest money deposit. This is a standard protective clause in Montana real estate purchase agreements.
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