A Colorado buyer's offer includes a 'financing contingency.' This means:
Why The contract is conditioned upon the buyer obtaining specified financing; if financing fails, the buyer may terminate Is Correct
Answer B: The contract is conditioned upon the buyer obtaining specified financing; if financing fails, the buyer may terminate
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
People Also Study
Related Colorado Questions
- The Colorado Contract to Buy and Sell includes a 'loan termination deadline.' If the buyer cannot obtain financing, by this date the buyer must:Contracts
- The Colorado Contract to Buy and Sell Real Estate includes a 'Loan Objection Deadline.' What happens if the buyer cannot obtain satisfactory financing by this deadline?Contracts
- In Colorado, which contract provision allows the buyer to back out if they cannot sell their current home by a certain date?Contracts
- In Colorado, if both the buyer and seller agree to terminate a contract and return the earnest money to the buyer, they should:Contracts
- A Colorado homeowner discovers that their property is within a FEMA Special Flood Hazard Area (SFHA). If they obtain federally backed financing, they will be required to:Environmental
- A Colorado seller's agent is approached by a buyer who wants to make an offer on the listing. If the broker cannot refer the buyer to another broker, the broker may:Agency
- A Colorado home seller agrees to carry back a second mortgage to help the buyer's financing. This is known as:Finance
- Colorado's 'due process' in a public trustee foreclosure includes a redemption period. How long do Colorado homeowners have to redeem their property after a foreclosure sale?Finance
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 Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →