Contracts
An Alabama purchase contract contains a financing contingency. If the buyer cannot obtain financing, the buyer may:
ASue the seller for specific performance
BTerminate the contract and receive the earnest money back✓ Correct
CTransfer the contract to another buyer
DExtend the closing date indefinitely
Explanation
If a contract contains a financing contingency and the buyer cannot obtain the specified financing, the buyer has the right to terminate the contract and receive a full refund of the earnest money deposit.
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