Contracts
A South Dakota buyer's financing contingency specifies that the buyer must apply for a loan within 5 days and obtain approval within 30 days. If the buyer fails to apply within 5 days:
AThe contingency is automatically waived and the contract becomes cash
BThe seller can waive the contingency and hold the buyer to the contract
CThe buyer has breached the contract terms, potentially allowing the seller to declare the contract void✓ Correct
DThe 5-day requirement is extended automatically by 5 more days
Explanation
If the buyer fails to fulfill a contingency condition (like timely loan application), they may be in breach of contract, potentially allowing the seller to terminate and claim the earnest money.
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