Contracts
A mortgage contingency in a purchase contract protects the buyer by:
AGuaranteeing they will receive financing
BAllowing cancellation of the contract if they cannot obtain financing on specified terms✓ Correct
CReducing the purchase price if rates rise
DRequiring the seller to provide seller financing
Explanation
A mortgage contingency allows the buyer to cancel the contract and recover their deposit if they are unable to obtain a mortgage commitment on the specified terms within the contingency period.
Related New York Contracts Questions
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