A Tucson buyer includes a financing contingency requiring loan approval within 21 days. On day 18, the buyer's lender requests additional documentation that will delay approval by one week. What should the buyer's agent recommend?
Correct Answer
B) Immediately request a written extension from the seller
The buyer should proactively request a written extension before the deadline expires to maintain contract protection. Option A is incorrect as hoping without action risks contract breach. Option C is incorrect as cancellation isn't necessary if an extension can be negotiated. Option D is incorrect as good faith effort alone doesn't extend contingency deadlines in Arizona.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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.
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