Contracts
Under the FAR-BAR contract, what happens if the buyer's financing is not approved by the financing deadline?
AThe contract automatically extends for 30 days
BThe buyer may cancel the contract and receive a refund of the deposit✓ Correct
CThe seller may keep the deposit as liquidated damages
DThe buyer must proceed without financing
Explanation
Under the FAR-BAR contract, if the buyer cannot obtain financing approval by the stated financing deadline, the buyer has the right to cancel the contract and receive a full refund of the earnest money deposit.
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