Agency
A Louisiana seller's agent receives an offer that includes a financing contingency. The agent should inform the seller that:
AAll financing contingencies are standard and never cause deals to fall through
BA financing contingency gives the buyer the right to terminate if they cannot obtain financing, which is a risk the seller should consider when evaluating the offer✓ Correct
CThe contingency automatically disappears at closing
DFinancing contingencies are illegal in Louisiana
Explanation
A financing contingency is a material term the seller must understand — it gives the buyer a contractual right to terminate if they cannot obtain the specified financing. The seller may prefer a cash offer or a buyer with pre-approval to reduce this risk.
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