Contracts
A buyer includes a financing contingency in their offer. If the buyer is unable to obtain a loan, the contingency allows the buyer to:
ASue the seller for specific performance
BTerminate the contract and receive a refund of earnest money✓ Correct
CAutomatically extend the closing date by 30 days
DReduce the purchase price by the amount of the unfunded loan
Explanation
A properly drafted financing contingency allows the buyer to terminate the contract and recover their earnest money if they cannot secure financing under the specified terms within the contingency period.
Related Arkansas Contracts Questions
- A real estate contract signed by a minor is generally:
- An appraisal contingency protects the buyer by:
- Consideration in a real estate contract must be:
- A seller accepts an offer and then receives a higher offer before closing. The seller may:
- An Arkansas real estate purchase contract must be in writing because of:
- A real estate contract becomes void if:
- A real estate contract that is 'executory' means:
- The essential difference between a void contract and a voidable contract is:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →