Contracts
In a New Jersey real estate sales contract, the mortgage contingency clause protects the buyer by:
AGuaranteeing the interest rate will not exceed a specified amount
BAllowing the buyer to cancel the contract if they cannot obtain financing on specified terms within a set time✓ Correct
CRequiring the seller to accept any financing the buyer can find
DObligating the lender to approve the buyer's application
Explanation
A mortgage contingency (financing contingency) gives the buyer the right to void the contract and recover their deposit if they cannot obtain a mortgage commitment on the specified terms (amount, rate, term) within the contingency period.
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