Contracts
A contingency in a real estate purchase contract is best described as:
AAn additional charge added to the purchase price
BA condition that must be met for the contract to become binding✓ Correct
CA penalty clause for late closing
DA requirement imposed by the lender
Explanation
A contingency is a condition that must be satisfied for the contract to remain binding. Common contingencies include financing, inspection, and appraisal contingencies.
Related California Contracts Questions
- When a buyer makes a counteroffer to a seller's counter-counteroffer, what happens to the original offer?
- An 'option contract' in real estate gives the buyer:
- A contract that is 'executory' is one that:
- What is a 'bilateral contract' as it applies to a real estate purchase agreement?
- What happens to an offer if it is not accepted before the stated expiration time?
- What is the difference between an 'assignment' and a 'novation' of a contract?
- What does it mean for a contract to be 'void' versus 'voidable'?
- Under an 'exclusive agency' listing, when does the broker NOT earn a commission?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →