Contracts
A buyer in Rhode Island signs a purchase agreement containing a financing contingency. If the buyer cannot obtain financing, the buyer may:
ASue the seller for specific performance
BTerminate the contract and typically recover their earnest money✓ Correct
CBe required to proceed with cash
DAutomatically extend the closing date by 90 days
Explanation
A financing contingency protects the buyer by allowing them to terminate the contract and recover their earnest money if they are unable to obtain the specified financing within the contingency period.
Related Rhode Island Contracts Questions
- A Rhode Island buyer who defaults on a purchase contract with a liquidated damages clause will typically:
- What is a 'co-brokerage agreement' in Rhode Island real estate?
- In Rhode Island, what is 'anticipatory repudiation' of a real estate contract?
- When both parties agree to terminate a real estate purchase contract and release each other from obligations, this is called:
- Which of the following best describes 'specific performance' as a remedy in a Rhode Island real estate contract dispute?
- A buyer and seller have an executed purchase contract. The seller then receives a higher offer. Under the contract, the seller:
- What is the legal term for the Rhode Island Real Estate seller's obligation to have the legal ability to convey title?
- A contingency clause in a purchase contract:
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →