Contracts
A Maine purchase and sale agreement contains a financing contingency. If the buyer cannot obtain financing:
AThe buyer forfeits the earnest money
BThe buyer may cancel the contract and recover their earnest money✓ Correct
CThe seller can force the buyer to proceed
DThe contract automatically extends for 90 days
Explanation
A properly written financing contingency allows the buyer to cancel the purchase and sale agreement and recover their earnest money deposit if they are unable to obtain the specified financing.
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