Contracts
In Washington, the financing contingency in a purchase and sale agreement typically allows the buyer to:
ATerminate the contract without penalty if they cannot obtain financing on stated terms✓ Correct
BExtend the closing date indefinitely until financing is secured
CRequire the seller to hold financing
DBack out after closing if their loan terms change
Explanation
A financing contingency protects the buyer by allowing termination without penalty if the buyer is unable to obtain financing on the specified terms (loan amount, interest rate, and loan type) by the deadline.
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