Contracts

A Missouri buyer makes an offer on a home and the seller accepts. Before closing, the seller discovers the buyer is using an FHA loan but the contract didn't specify loan type. The seller may:

ACancel the contract because FHA requires certain repairs
BProceed normally; the contract is binding regardless of loan type unless the contract specifies otherwise✓ Correct
CDemand a higher purchase price for FHA
DRefuse to close without MREC approval

Explanation

A binding purchase contract is enforceable regardless of the financing type unless the contract specifies otherwise. If FHA appraisal requirements reveal needed repairs, those would be addressed through normal contract contingency processes.

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