In Arizona real estate transactions, who typically has the burden of satisfying a financing contingency?
Correct Answer
B) The buyer must make good faith efforts to obtain the specified financing
The buyer has the burden to make good faith efforts to obtain the financing specified in the contingency. Option A incorrectly places responsibility on the seller. Option C incorrectly involves the listing agent in financing. Option D is wrong as the financing responsibility primarily rests with the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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Previous Question
A Glendale buyer's financing contingency requires loan approval by day 21. All of the following would satisfy this contingency EXCEPT:
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A Peoria seller accepts an offer with multiple contingencies: financing (21 days), inspection (10 days), and appraisal (18 days). The buyer waives the inspection contingency on day 5 but the appraisal comes in low on day 16. What is the current status of the contract?