Contracts
An NC buyer signs an Offer to Purchase and inserts a 'loan contingency' clause. This contingency protects the buyer by:
AGuaranteeing the buyer will obtain financing
BAllowing the buyer to terminate and recover their earnest money if they cannot obtain the specified financing✓ Correct
CObligating the seller to help the buyer obtain a mortgage
DSetting the interest rate the buyer must accept
Explanation
A loan contingency (financing contingency) allows the buyer to terminate the contract and recover their earnest money deposit if they cannot obtain the specified mortgage terms. It is separate from the due diligence period in NC's standard contract.
Related North Carolina Contracts Questions
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- Under the NC Standard Form 2-T, the 'Due Diligence Fee' is paid:
- The 'due diligence period' in a North Carolina purchase contract is the time during which:
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