Contracts
A Texas buyer terminates a contract after the option period using the Third Party Financing Addendum's financing contingency. The buyer is entitled to:
ABoth the earnest money and the option fee
BThe earnest money only (option fee stays with seller)✓ Correct
CNeither the earnest money nor the option fee
DA refund of all costs including inspection fees
Explanation
When a buyer properly terminates under the Third Party Financing Addendum (financing contingency), the earnest money is returned. The option fee, if any, was paid to the seller during the option period and is not returned.
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