Contracts
A GAR contract provides for a specific closing date, but the parties cannot close by that date. What typically happens?
AThe contract is automatically terminated
BThe parties must execute a written amendment extending the closing date✓ Correct
CThe seller may keep the earnest money
DThe buyer may sue the seller immediately
Explanation
If the parties cannot close by the specified date, they typically execute a written amendment (extension addendum) to extend the closing date. The contract is not automatically void if both parties cooperate.
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