Contracts
Which clause in a Virginia purchase contract protects the seller if the buyer is unable to obtain financing?
AThere is no seller protection in a financing contingency
BThe financing contingency — it allows the buyer to void but also releases the seller to relist if financing fails✓ Correct
CThe liquidated damages clause only
DThe time is of the essence clause
Explanation
A properly drafted financing contingency protects the buyer's earnest money if financing fails, while also allowing the seller to know the transaction will terminate if financing is not obtained within the specified period.
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