Finance
What is a mortgage contingency (financing contingency) in a purchase contract?
AA provision requiring the seller to carry the financing
BA clause making the purchase contingent on the buyer obtaining specific financing terms✓ Correct
CA requirement for the buyer to have cash reserves
DA lender's requirement for hazard insurance
Explanation
A mortgage contingency allows the buyer to cancel the contract and recover their earnest money if they cannot obtain financing with specified terms (loan amount, interest rate, program) within a specified timeframe.
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