Contracts
In Illinois, the standard residential purchase contract typically includes a 'mortgage contingency' that protects the buyer by:
AGuaranteeing the buyer will receive the mortgage at the stated interest rate
BAllowing the buyer to cancel the contract and receive their earnest money back if they cannot obtain financing meeting the specified terms✓ Correct
CRequiring the seller to help the buyer qualify for a mortgage
DCapping the seller's right to negotiate the purchase price after acceptance
Explanation
A mortgage (financing) contingency protects the buyer by making the contract contingent on obtaining a mortgage meeting specified terms (loan amount, interest rate, type). If the buyer cannot obtain financing after good-faith efforts within the contingency period, they can cancel the contract and receive their earnest money refunded. Without a mortgage contingency, a buyer who can't get financing may lose their earnest money if they cannot close.
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