Contracts

In Missouri, a purchase contract's financing contingency protects the buyer by:

AGuaranteeing the loan will be approved
BAllowing the buyer to cancel and recover earnest money if they cannot obtain financing on specified terms✓ Correct
CRequiring the seller to provide financing
DLocking in the interest rate

Explanation

A financing contingency allows the buyer to cancel the contract and recover their earnest money if they are unable to secure a loan on the specified terms (rate, amount, type) within the contingency period.

Related Missouri Contracts Questions

Practice More Missouri Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Missouri Quiz →