Contracts

What is a contingency in a Nevada real estate purchase contract?

AA penalty clause for late closing
BA condition that must be met for the contract to become binding or for a party to be obligated to proceed✓ Correct
CA requirement that the buyer must provide proof of funds
DA standard clause about property taxes

Explanation

A contingency is a condition built into the contract that must be satisfied for the transaction to proceed. Common Nevada contingencies include financing, inspection, appraisal, and title contingencies. If a contingency is not met, the affected party may be able to cancel.

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