Contracts

A 'contingency' in a Georgia real estate contract:

AA. Always results in the contract being void
BB. Makes the contract conditional on a future event — if not satisfied, a party may terminate✓ Correct
CC. Requires court approval to be enforceable
DD. Can only be waived by the seller

Explanation

A contingency is a condition that must be met for the contract to be fully binding and for closing to occur. Common contingencies include financing, inspection, and appraisal. If a contingency is not satisfied, the applicable party may terminate the contract.

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