Contracts
Which of the following clauses in a South Dakota real estate purchase contract allows the buyer to terminate if they cannot obtain financing?
AEscalation clause
BFinancing contingency clause✓ Correct
CHabendum clause
DDefeasance clause
Explanation
A financing contingency clause (also called a mortgage contingency) allows the buyer to terminate the contract and recover their earnest money if they are unable to obtain financing under specified terms within a defined period.
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