Contracts
An Oregon buyer's offer includes a financing contingency stating the transaction is contingent on obtaining a 30-year loan at no more than 7% interest. If the buyer only qualifies for 7.5%, the buyer may:
ABe forced to proceed because the rate difference is minor
BTerminate the contract and recover the earnest money✓ Correct
CRequest a price reduction equal to the rate difference
DDemand the seller pay discount points to buy down the rate
Explanation
A properly drafted financing contingency protects the buyer: if the specified financing terms cannot be met, the buyer may terminate and recover their earnest money. The contingency defines the exact terms required — if those terms are unavailable, the condition has failed and the buyer is not obligated to proceed.
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