Contracts
In South Carolina, which clause in a purchase contract allows a buyer to walk away if they cannot obtain financing?
ADue diligence clause
BFinancing contingency clause✓ Correct
CForce majeure clause
DEscalation clause
Explanation
A financing contingency (mortgage contingency) allows the buyer to terminate the contract and recover the earnest money if they are unable to obtain the specified financing within the contingency period. It protects buyers from losing their deposit if a loan falls through.
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