Contracts
A contingency clause in a purchase contract allows a buyer to:
AClose without a final inspection
BCancel or renegotiate the contract if a specified condition is not met✓ Correct
CExtend the closing date indefinitely
DAssign the contract to another buyer without the seller's consent
Explanation
A contingency clause makes the contract conditional on a specified event occurring (e.g.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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