Contracts
A Vermont seller accepts an offer contingent on the buyer obtaining financing within 30 days. On day 28, the buyer is denied financing. The contract is:
AVoidable by the seller because the buyer failed to obtain financing
BTerminated and the buyer is entitled to a refund of the earnest money✓ Correct
CExtended automatically by 15 days under Vermont law
DStill binding because the buyer could try another lender
Explanation
When a financing contingency is not satisfied within the specified time, the contract is terminated, and the buyer is typically entitled to a refund of their earnest money deposit, provided they acted in good faith to obtain financing.
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