Contracts
A contingency in a purchase contract:
AMakes the contract void immediately
BIs a condition that must be met for the contract to become binding✓ Correct
CExtends the escrow period automatically
DRequires seller approval
Explanation
A contingency is a condition that must be satisfied for the contract to proceed. Common contingencies include financing, inspection, and appraisal. If a contingency is not met, the buyer typically can cancel and receive their deposit back.
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