Contracts
A New York real estate contract that includes a 'mortgage contingency' clause protects the:
ASeller from a buyer who cannot obtain financing
BBuyer's right to cancel and recover their deposit if they cannot obtain a mortgage at specified terms✓ Correct
CBroker's right to a commission regardless of financing
DLender's right to foreclose if the buyer defaults
Explanation
A mortgage contingency (also called a financing contingency) allows the buyer to cancel the contract and recover their earnest money deposit if they are unable to obtain mortgage financing at the terms specified in the contract.
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