Contracts
In Louisiana, if a buyer's financing contingency expires without the buyer obtaining a commitment, and no extension is requested:
AThe buyer automatically gets 30 more days
BThe buyer may be in breach unless they terminate pursuant to the contingency, and the earnest money may be at risk✓ Correct
CThe contract is automatically void with full earnest money refund
DThe seller must reduce the price to accommodate the buyer
Explanation
If the financing contingency expires without the buyer obtaining financing and the buyer fails to terminate the contract before expiration, the buyer may be in default. They should formally terminate within the contingency period to protect their earnest money.
Related Louisiana Contracts Questions
- Under Louisiana law, a minor (person under age 18) who signs a real estate contract:
- In Louisiana, an offer to purchase real estate becomes a binding contract when:
- In Louisiana, 'simulation' in a contract refers to:
- What is the effect of a 'force majeure' (act of God) clause in a Louisiana real estate contract?
- A buyer makes an offer to purchase a property and specifies that the offer will expire in 48 hours. Before the 48 hours expire, the seller rejects the offer. Can the buyer still enforce the original offer?
- In Louisiana, 'lesion beyond moiety' is a concept that allows a seller to rescind a sale if:
- The Louisiana Redhibition law protects buyers from:
- A Louisiana seller includes a 'right to continue showing' clause in the accepted purchase agreement. This allows the seller to:
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →