Contracts
A Rhode Island buyer who has a mortgage financing contingency and cannot obtain the required loan may:
ABe forced to purchase the property regardless
BVoid the contract and recover the earnest money deposit if the contingency is properly invoked✓ Correct
CKeep the earnest money deposit and the right to the property
DAssign the contract to another buyer without seller's consent
Explanation
A financing contingency allows the buyer to void the contract and recover their earnest money deposit if they cannot obtain the required financing, provided the contingency is properly invoked within the specified time frame.
Related Rhode Island Contracts Questions
- Specific performance is a remedy in Rhode Island real estate contract disputes that allows:
- In a Rhode Island real estate contract, what does 'prorations' at closing typically include?
- In Rhode Island, what is 'constructive notice' of a purchase contract?
- What is a 'punch list' in the context of a Rhode Island new construction sale?
- What is a 'release of earnest money' in Rhode Island when a transaction falls through?
- What is 'impossibility of performance' as a defense in a Rhode Island real estate contract?
- What is a 'contract for deed' (installment sales contract) in Rhode Island and what risk does it carry for the buyer?
- What is a 'co-brokerage agreement' in Rhode Island real estate?
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 →