What is a 'mortgage contingency' removal and its significance in Delaware?
Why A buyer's formal waiver of the mortgage contingency — after which the buyer is obligated to close regardless of financing status, accepting the risk of potential earnest money forfeiture if financing fails Is Correct
Answer B: A buyer's formal waiver of the mortgage contingency — after which the buyer is obligated to close regardless of financing status, accepting the risk of potential earnest money forfeiture if financing fails
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 Delaware Questions
- In Delaware, what is an 'earnest money deposit' (EMD) and what happens to it if the buyer defaults?Contracts
- An earnest money deposit in a Delaware real estate contract is best described as:Contracts
- In a Delaware real estate transaction, 'time is of the essence' means:Contracts
- Novation in a real estate contract means:Contracts
- If a buyer's agent learns that the seller is under financial distress, the agent's obligation is to:Agency
- A Delaware seller instructs their listing agent to refuse offers from buyers of a specific national origin. The agent should:Fair Housing
- In Delaware, what is 'seller financing' (purchase money mortgage)?Finance
- 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
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
State-Specific 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 →