Contracts
A buyer in Alabama includes a financing contingency in their purchase contract. If the buyer cannot obtain financing, the buyer is entitled to:
ASue the seller for specific performance
BReceive their earnest money back✓ Correct
CExtend the closing date indefinitely
DTransfer the contract to another buyer
Explanation
A financing contingency protects the buyer — if they are unable to secure financing as specified in the contract, they can terminate the agreement and recover their earnest money deposit.
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