Contracts
Which of the following is an example of a contingency in a Connecticut purchase contract?
AThe purchase price agreed upon by both parties
BThe buyer's right to purchase only if they obtain satisfactory mortgage financing✓ Correct
CThe seller's obligation to convey clear title
DThe broker's commission rate
Explanation
A contingency is a condition that must be satisfied for the contract to become binding. A financing contingency allows the buyer to terminate the contract and recover their deposit if satisfactory financing cannot be obtained.
People Also Study
Related Connecticut Questions
- A Connecticut purchase agreement includes a mortgage contingency. If the buyer cannot obtain financing, the buyer may:Contracts
- A Connecticut purchase contract states that the buyer must obtain a satisfactory home inspection within 10 days. The 10th day is a Sunday. Under Connecticut law, when does the contingency period expire?Contracts
- A Connecticut buyer signs a purchase and sale agreement and provides a $10,000 earnest money deposit. The buyer discovers a material defect during inspection and invokes the inspection contingency to terminate. The earnest money:Contracts
- A Connecticut buyer's loan falls through 2 days before closing due to a last-minute job loss discovered by the lender. The purchase contract has a financing contingency that has already been removed. What can the buyer do?Finance
- In Connecticut, an offer to purchase becomes a binding contract when:Contracts
- A Connecticut buyer's agent negotiates a purchase contract and later discovers they failed to include an important contingency the buyer requested. This is most likely a breach of the agent's duty of:Agency
- A Connecticut property owner grants an easement to the local utility company to run power lines across their property. This is an example of a(n):Property Ownership
- A Connecticut buyer discovers after purchase that the property was formerly used as a gas station. Their first step should be to:Environmental
Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
Study This Topic
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →