Contracts
The financial contingency in a GAR Purchase and Sale Agreement typically provides the buyer:
AThe right to purchase at any interest rate
BA specified number of days to obtain a mortgage commitment or terminate the contract✓ Correct
CA guarantee of loan approval
DThe right to select the lender
Explanation
The financing contingency gives the buyer a specified period to obtain loan approval. If the buyer cannot obtain financing on the agreed terms, they may terminate and receive their earnest money back.
People Also Study
Related Georgia Questions
- Under the Georgia Purchase and Sale Agreement, the buyer's earnest money deposit is typically how much?Contracts
- Under the GAR contract's 'New Loan' contingency, if the buyer cannot obtain financing at specified terms, they may:Contracts
- A 'release of contingency' in a Georgia Purchase and Sale Agreement means the buyer:Contracts
- Under the GAR Purchase and Sale Agreement, the 'inspection contingency' allows the buyer to:Contracts
- A contingency clause in a purchase contract gives the:Contracts
- Under the GAR Purchase and Sale Agreement, if the seller does not respond to an offer within the stated deadline, the offer:Contracts
- A buyer's earnest money of $5,000 is 2% of the purchase price. What is the purchase price?Real Estate Math
- A seller in Georgia who takes back a purchase money mortgage must disclose that the security deed will be subordinate to the existing first mortgage. This situation is known as:Finance
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
Study This Topic
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →