Contracts
A financing contingency in a Pennsylvania Agreement of Sale primarily protects:
AThe seller from a low appraisal
BThe buyer if they cannot obtain mortgage financing✓ Correct
CThe broker from liability if the loan falls through
DThe title company from undisclosed liens
Explanation
A financing contingency allows the buyer to void the contract and recover earnest money if they cannot obtain the mortgage financing specified in the agreement. It protects the buyer from being forced to close without an approved loan.
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