Contracts
A Michigan purchase agreement includes a financing contingency. If the buyer cannot obtain financing, the buyer may:
AForfeit their earnest money
BBe sued for specific performance
CCancel the contract and receive their earnest money back✓ Correct
DBe required to find alternative financing within 30 days
Explanation
A properly written financing contingency allows the buyer to cancel the purchase agreement and recover their earnest money if they are unable to obtain the specified financing within the contingency period.
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