Contracts
If a buyer's financing contingency is not met by the specified deadline and the buyer does not notify the seller, what is the likely result?
AThe contract automatically extends
BThe contingency is waived and the buyer may be in default if they fail to close✓ Correct
CThe seller must grant a 30-day extension
DThe contract is automatically rescinded
Explanation
If a buyer fails to timely notify the seller that a contingency has not been met, the contingency is typically waived, and the buyer becomes obligated to perform. Failure to close after waiving the contingency may constitute a breach of contract.
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