Contracts

A Maine purchase agreement includes a 'financing contingency' with a 'loan commitment date.' If the buyer fails to apply for the loan in time to meet the commitment date, this is:

AThe seller's responsibility to extend
BA failure by the buyer that could result in the contingency being considered waived✓ Correct
CAn automatic extension of 7 days
DMREC's responsibility to resolve

Explanation

A buyer who fails to timely apply for their mortgage, causing them to miss the loan commitment date, may be found to have waived the contingency — leaving them potentially exposed to forfeiting their earnest money if the purchase does not close.

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