Contracts
In Virginia, a buyer who properly exercises a financing contingency (loan was denied) and terminates the contract should receive:
AForfeiture of the earnest money as a penalty
BReturn of their earnest money deposit✓ Correct
COnly 50% of the earnest money
DThe earnest money minus a cancellation fee
Explanation
If a buyer exercises a properly written financing contingency — because their loan application was denied — they are entitled to a full refund of their earnest money deposit.
Related Virginia Contracts Questions
- Under Virginia law, a lease agreement that does not specify a duration is presumed to be:
- A Virginia real estate contract that has been fully performed by both parties is called:
- In Virginia, a real estate contract is voidable (not void) when:
- The Virginia Residential Property Disclosure Act requires sellers to provide buyers with a disclosure statement on what basis?
- In Virginia, a 'back-up offer' in real estate is one that:
- In Virginia, a 'merger doctrine' in real estate law means:
- In Virginia, a real estate sales contract is legally enforceable only if it is:
- Under Virginia law, a real estate sales contract must be in writing to be enforceable due to the:
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →