Contracts
An Iowa real estate contract contingency that allows the buyer to cancel if they cannot obtain financing is called a:
AAcceleration clause
BMortgage contingency (financing contingency)✓ Correct
CDefeasance clause
DSubordination clause
Explanation
A financing contingency (mortgage contingency) gives the buyer the right to cancel the purchase agreement and recover their earnest money if they are unable to obtain the specified financing within the agreed time period.
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