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:
Why Terminate the contract and receive a full earnest money refund Is Correct
Answer B: Terminate the contract and receive a full earnest money refund
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
People Also Study
Related Alaska Questions
- A buyer defaults on a purchase contract in Alaska. If the contract contains a liquidated damages clause limited to the earnest money, the seller's remedy is:Contracts
- Which contract clause allows a buyer to exit the purchase agreement if they cannot obtain financing on specified terms?Contracts
- An Alaska buyer includes a financing contingency in the purchase agreement. The buyer is unable to obtain a loan. The buyer is entitled to:Contracts
- Under Alaska contract law, an offer to purchase real estate is effectively accepted when:Contracts
- A real estate salesperson in Alaska receives an earnest money deposit from a buyer. The salesperson should:Alaska License Law
- A licensee who receives an earnest money check but cannot deposit it in the trust account immediately because the bank is closed must:Alaska License Law
- In an Alaska closing, the buyer's earnest money deposit is shown on the settlement statement as:Escrow & Title
- An Alaska broker who receives an earnest money deposit must maintain a separate trust account and may NOT:Alaska License Law
Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →