Contracts
A purchase agreement subject to the buyer obtaining financing at a specific interest rate is an example of:
AA void contract
BA financing contingency✓ Correct
CSpecific performance
DA unilateral contract
Explanation
A financing contingency makes the buyer's obligation conditional on obtaining a loan at a specific rate and terms. If the buyer cannot secure financing on those terms, they can typically exit the contract.
People Also Study
Related Kentucky Questions
- A Kentucky property owner makes monthly mortgage payments of $1,250. The annual interest rate is 6% and the loan balance is $200,000. How much of the first month's payment goes toward principal?Real Estate Math
- Under Kentucky law, a purchase contract that includes a financing contingency must typically specify:Contracts
- A Kentucky buyer and seller agree to all terms of a purchase contract but never sign it. This agreement is:Contracts
- A contingency in a purchase contract:Contracts
- A buyer pays $2,250 in interest in the first month on their mortgage. What is the outstanding loan balance if the annual interest rate is 6%?Real Estate Math
- A purchase contract that provides for specific performance as a remedy allows the non-breaching party to:Contracts
- A Kentucky buyer's monthly mortgage payment is $1,440. If the annual interest rate is 6% and the loan amount is $200,000, what portion of the first payment is principal?Real Estate Math
- A Kentucky lender's appraisal of a property comes in $15,000 below the contract price of $275,000. The buyer and seller do not renegotiate. If the lender will lend 90% of the lesser of appraised value or purchase price, the loan amount is:Finance
Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
Study This Topic
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →