Contracts

Vermont's 'mortgage contingency' deadline in a purchase contract requires the buyer to:

AObtain a mortgage approval from any lender by any date
BObtain a written mortgage commitment from a lender by the specified date or risk losing their earnest money if they fail to exercise the contingency✓ Correct
CClose the mortgage at the same time as signing the purchase contract
DUse a specific lender approved by the seller

Explanation

The financing contingency deadline requires the buyer to obtain a written mortgage commitment by a specific date. If the buyer cannot obtain financing and fails to exercise the contingency (notify the seller in writing by the deadline), they may forfeit their earnest money. Timely action is critical.

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