Contracts
A Washington purchase and sale agreement specifies that 'time is of the essence.' On the final day of the financing contingency, the buyer's lender denies the loan. The buyer notifies the seller the next morning. The contingency:
AIs still valid because one day is not significant
BHas likely expired because the buyer did not notify within the contingency period✓ Correct
CAutomatically extends by 3 days under Washington law
DCannot expire if the buyer acted in good faith
Explanation
With a 'time is of the essence' clause, deadlines are strictly enforced. If the buyer's notification came after the contingency deadline, the contingency likely expired. The seller may be entitled to retain the earnest money unless the contract provides otherwise.
Related Washington Contracts Questions
- In Washington, the financing contingency in a purchase and sale agreement typically allows the buyer to:
- A Washington seller signs a listing agreement that expires in 90 days. After 95 days, with no sale, the seller wants to list with a new broker. Under the expired listing agreement, the original broker:
- The standard real estate purchase and sale agreement used in Washington State is commonly known as:
- In Washington, 'accord and satisfaction' in a real estate contract context means:
- In Washington, a purchase agreement for the purchase of a newly constructed home from a builder typically includes a 'new construction addendum' that addresses:
- A Washington purchase agreement states 'closing on or before October 15.' The buyer is ready but the seller needs until October 20. If the parties don't modify the agreement in writing, the buyer may:
- In Washington, an assignment of a purchase agreement transfers:
- A buyer makes an offer on a Washington property. The seller makes a counteroffer changing the price. The buyer then makes a second counteroffer changing the closing date. At this point, which offer is on the table?
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →