ContractsIntermediateDelaware Exam

What is a 'contingent offer' and how does it affect Delaware home sellers?

ASimply an offer submitted by a buyer who doesn't yet have mortgage pre-approval, meaning the seller assumes a somewhat higher closing risk, as a general rule
BAn offer conditioned on one or more events occurring — such as the buyer selling their current home, obtaining financing, or satisfactory inspection resultsCorrect
CAn offer with a 'contingent' commission structure benefiting the agent
DAn offer that is conditional on the asking price being reduced

Why An offer conditioned on one or more events occurring — such as the buyer selling their current home, obtaining financing, or satisfactory inspection results Is Correct

Answer B: An offer conditioned on one or more events occurring — such as the buyer selling their current home, obtaining financing, or satisfactory inspection results

A contingent offer means the purchase is conditional on specified events. Common contingencies: financing (loan approval), home inspection, appraisal, and sale of buyer's existing home.

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

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