Finance

What is a 'mortgage contingency' in a Kansas purchase agreement?

AA condition requiring the buyer to pay cash
BA condition making the sale contingent on the buyer obtaining financing on specified terms✓ Correct
CA clause requiring the seller to help with closing costs
DA condition for the property to pass inspection before mortgage approval

Explanation

A mortgage contingency (financing contingency) makes the sale conditional upon the buyer obtaining a mortgage loan on terms acceptable to the buyer. If financing falls through, the buyer can exit the contract.

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