Contracts
A New York real estate contract contains a mortgage contingency clause. If the buyer is unable to obtain financing after making a good-faith effort, the buyer may:
AForfeit the deposit and walk away
BCancel the contract and receive a full refund of the deposit✓ Correct
CForce the seller to lower the price
DAssign the contract to a cash buyer
Explanation
A properly drafted mortgage contingency clause in a New York contract allows the buyer to cancel the contract and recover the full deposit if the buyer is unable to obtain the specified financing after a good-faith effort. The buyer must typically provide written notice within the contingency period.
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