Contracts
A buyer in Maine makes an offer contingent on obtaining financing at 7% interest. The buyer cannot obtain a loan below 7.5%. The buyer may:
ABe forced to proceed with the purchase
BCancel the contract and recover their earnest money✓ Correct
CSue the seller for specific performance
DTransfer the contract to another buyer
Explanation
A financing contingency protects the buyer. If the buyer cannot obtain financing at the specified terms, the contingency allows the buyer to cancel the contract and recover the earnest money deposit.
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