Contracts
A contingency in a Pennsylvania real estate contract protects the buyer by:
AAutomatically reducing the price if an appraisal comes in below the purchase price
BAllowing the buyer to withdraw or renegotiate under specified conditions without forfeiting the earnest money deposit✓ Correct
CPermitting the buyer to transfer the contract to another purchaser without the seller's consent
DExtending the closing date indefinitely until the buyer is fully satisfied
Explanation
A contingency is a condition that must be satisfied for the contract to proceed to closing. Common Pennsylvania contingencies include mortgage financing approval, satisfactory home inspection results, an appraisal at or above the purchase price, and sale of the buyer's current home.
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