Contracts
A Delaware purchase contract contains a 'mortgage contingency.' If the buyer fails to obtain financing despite good-faith efforts, the buyer may:
ABe sued for specific performance by the seller
BTerminate the contract and recover the earnest money✓ Correct
CExtend the closing date indefinitely
DAssign the contract to another buyer
Explanation
A mortgage contingency allows the buyer to terminate the contract and recover their earnest money if they cannot obtain the specified financing despite good-faith efforts within the contingency period.
People Also Study
Related Delaware Questions
- What is the legal remedy of 'specific performance' in a Delaware real estate transaction?Contracts
- In Delaware, what is 'seller financing' (purchase money mortgage)?Finance
- A Delaware home purchase contract includes a mortgage contingency requiring the buyer to obtain financing at 7% or lower. If rates rise to 7.5% and the buyer cannot qualify, what happens?Contracts
- What is 'earnest money' versus 'option fee' in a Delaware purchase contract?Contracts
- A Delaware seller accepts a buyer's offer but changes the price before signing. This constitutes a:Contracts
- In Delaware, a 'contingency for sale of buyer's property' in a purchase contract means:Contracts
- A Delaware buyer's earnest money deposit of $12,000 represents 3% of the purchase price. What is the full purchase price?Real Estate Math
- In Delaware, what is the agent's obligation when they cannot contact their client before a contract deadline?Agency
Key Terms to Know
Earnest Money
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.
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.
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 Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →