Contracts

Under the GAR contract's 'New Loan' contingency, if the buyer cannot obtain financing at specified terms, they may:

AProceed without any financing
BTerminate the contract and receive their earnest money back✓ Correct
CSue the seller for the difference
DExtend closing indefinitely

Explanation

The financing contingency allows the buyer to terminate the contract without penalty and recover their earnest money if they are unable to obtain a loan commitment with the specified terms within the contingency period.

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