Contracts

A Washington purchase and sale agreement is contingent on the buyer obtaining financing at a specific interest rate. The buyer cannot obtain a loan at that rate. The buyer should:

AWaive the contingency and proceed with a higher rate
BFormally exercise the financing contingency in writing to cancel and recover earnest money✓ Correct
CRequest the seller to contribute more toward points
DAutomatically receive a refund of earnest money without any action

Explanation

To properly exercise a financing contingency, the buyer must provide written notice within the contingency period stating that the condition cannot be met. Proper exercise of the contingency entitles the buyer to a refund of earnest money.

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