Contracts

What is a 'contingency' in a Rhode Island real estate contract?

AA penalty for late closing
BA condition that must be met for the contract to become binding or to proceed to closing✓ Correct
CA note added to the deed restricting use
DAn open-ended lease clause

Explanation

A contingency is a condition in the contract that must be satisfied for the transaction to proceed. If the condition is not met within the specified time, the contract may be terminated and earnest money returned.

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