Contracts
Which of the following best describes a 'contingency' in a Florida real estate purchase contract?
AA mandatory clause required by Florida law
BA condition that must be satisfied for the contract to become binding✓ Correct
CA penalty clause for late closing
DA clause requiring the seller to make all repairs
Explanation
A contingency is a condition that must be satisfied (or waived) for the contract to proceed to closing. Common contingencies in Florida include financing, inspection, and appraisal contingencies. If a contingency is not met, the affected party may terminate the contract.
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