Contracts

A seller in Alaska has accepted an offer with a financing contingency. The buyer is unable to obtain financing. Under most Alaska purchase agreements, the buyer may:

ADemand the seller extend the closing date indefinitely
BTerminate the contract and receive a full earnest money refund✓ Correct
CSue the seller for failure to help secure financing
DBe required to use a hard money loan instead

Explanation

When a financing contingency is not satisfied, the buyer typically has the right to terminate the contract and receive a full refund of the earnest money. The contingency protects the buyer from losing their deposit if they cannot obtain financing.

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