Contracts
A 'sale contingency' allows the buyer to:
ACancel the contract if the inspection reveals problems
BMake the purchase contingent on selling their current home✓ Correct
CDelay closing indefinitely
DObtain a lower purchase price if comparable sales decline
Explanation
A sale contingency protects a buyer who must sell their current home to finance the new purchase. If the buyer's home does not sell within the contingency period, they can terminate the contract and recover their earnest money.
Related Alabama Contracts Questions
- A 'contingency' in a real estate contract is best described as:
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