ContractsContingenciesMEDIUM
A buyer waives the financing contingency to make an offer more competitive. If the buyer later cannot obtain a loan, what is the buyer's position?
Correct Answer
B) The buyer may be in breach of contract and risk losing earnest money
By waiving the financing contingency, the buyer removed the contractual protection. If the buyer cannot close, the buyer may be in breach and the earnest money may be at risk.
Answer Options
A
The buyer can still cancel without penalty because financing is always contingentB
The buyer may be in breach of contract and risk losing earnest moneyC
The seller must find alternative financing for the buyerD
The listing agent must pay the differenceWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
contingenciescontractswaiverfinancing_risk
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