Contracts

A purchase agreement that contains a home sale contingency means:

AThe buyer must sell their current home before the purchase can close✓ Correct
BThe seller must find a replacement home before closing
CThe lender must approve the home sale
DBoth parties must sell homes simultaneously

Explanation

A home sale contingency makes the purchase contingent on the buyer successfully selling their current home within a specified timeframe; if the contingency is not satisfied, the buyer may exit the contract.

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