Contracts
A Florida seller accepts an offer on their home. The buyer's loan is denied, and the contract contained a valid mortgage contingency. In this situation:
AThe seller may keep the earnest money deposit
BThe buyer is entitled to cancel the contract and receive a refund of their deposit✓ Correct
CThe buyer must proceed to closing regardless
DThe seller may sue the buyer for specific performance
Explanation
If a valid mortgage contingency is included in the contract and the buyer's loan is denied through no fault of the buyer, the buyer has the right to cancel the contract and receive a full refund of their earnest money deposit.
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