Under Minnesota law and standard purchase agreement practice, which of the following statements about contingency deadlines is NOT accurate?
Correct Answer
C) A financing contingency deadline automatically extends by 30 days if the lender requests additional time for underwriting
There is no provision in Minnesota law or standard purchase agreement forms that automatically extends a financing contingency deadline by 30 days (or any other period) because the lender requests additional underwriting time. Contingency deadlines are fixed contractual dates. Any extension must be negotiated and agreed upon in writing by both the buyer and seller. A lender's unilateral request for more time does not alter the contractual deadline between buyer and seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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