What is the effect of waiving a contingency in an Arizona real estate contract?
Correct Answer
C) The contingency is permanently removed and cannot be used for cancellation
When a contingency is waived, it is permanently removed from the contract and cannot be used as grounds for cancellation. Option A is incorrect as waivers are typically permanent. Option B is wrong as the benefiting party can unilaterally waive their contingency. Option D confuses waiver with extension.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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Previous Question
A Chandler buyer's lender requires a survey contingency due to potential boundary disputes. The survey reveals the neighbor's fence encroaches 3 feet onto the property. How should this situation be handled?
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