Contracts
The TREC residential contract's financing deadline is the date by which the buyer must receive written financing approval. If this date passes without approval, the buyer must notify the seller in writing or:
AThe contract automatically extends another 15 days
BThe contract remains valid and the buyer waives their financing contingency protection✓ Correct
CTREC automatically extends the deadline
DThe earnest money is automatically released to the seller
Explanation
If the buyer fails to give notice by the financing deadline that they cannot obtain financing, they waive their right to terminate under the financing contingency. The buyer remains bound by the contract and may forfeit their earnest money if they fail to close.
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