Contracts
A Hawaii purchase contract contains a contingency stating 'This offer is contingent upon buyer obtaining financing at 7% or less within 21 days.' This is an example of a:
ACondition subsequent
BFinancing contingency✓ Correct
CInspection contingency
DAppraisal contingency
Explanation
A financing contingency makes the buyer's obligation to purchase dependent upon securing a loan under specified terms. If the buyer cannot obtain financing, the contract may be voided and earnest money returned.
Related Hawaii Contracts Questions
- In Hawaii, a contract to sell real property signed by only one spouse when both are on title is generally:
- What is 'breach of contract' in Hawaii real estate and what remedies are available?
- Under Hawaii contract law, the remedy of 'specific performance' means:
- A Hawaii buyer's purchase contract is contingent on selling their current home within 30 days. This is known as a:
- A Hawaii real estate agent who prepares a purchase contract is performing a ministerial task. If the agent gives legal advice about contract rights, the agent may be:
- In Hawaii, an 'option contract' obligates which party to perform?
- Which element is NOT required for a valid Hawaii real estate purchase contract?
- What does 'time is of the essence' mean for a financing contingency removal in Hawaii?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →