Contracts
A Vermont real estate purchase contract requires the buyer to obtain written financing approval by a specific date. If the buyer fails to secure financing by that date and the contract has a financing contingency, the MOST LIKELY outcome is:
AThe buyer must pay a penalty equal to 5% of the purchase price
BThe buyer may terminate the contract and recover the earnest money deposit✓ Correct
CThe seller can force the buyer to close without financing
DThe contract automatically extends indefinitely
Explanation
A properly drafted financing contingency allows the buyer to terminate the contract and recover their earnest money if they cannot obtain financing approval by the specified date. This protects buyers from being contractually bound to a purchase they cannot finance.
Related Vermont Contracts Questions
- Vermont's title contingency in a purchase contract allows the buyer to:
- In Vermont, a real estate purchase and sale agreement is considered 'executory' until:
- A Vermont purchase contract contains an 'as-is' clause. This means:
- Under Vermont law, a real estate sales contract signed by a minor (under age 18) is generally:
- Vermont's 'property disclosure exemptions' exclude from mandatory disclosure requirements:
- Which of the following is NOT a way a Vermont real estate contract can be terminated?
- Vermont's 'environmental indemnification' clause in a commercial purchase contract protects the buyer by:
- Vermont's 'property condition contingency' can be satisfied when:
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