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:
ASue the seller for breach of contract
BReceive a refund of earnest money and terminate the contract✓ Correct
CDemand that the seller lower the price
DConvert the earnest money to a rental deposit
Explanation
A properly invoked financing contingency allows the buyer to terminate the contract and recover the earnest money deposit if the buyer is unable to obtain financing under the terms specified.
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