Contracts

A West Virginia purchase contract contains a financing contingency stating the buyer must obtain loan approval within 15 days. If the buyer cannot obtain financing within that period, the buyer may:

ABe sued for breach of contract
BTerminate the contract and recover earnest money✓ Correct
COnly extend the contingency with seller consent
DForfeit earnest money but avoid further liability

Explanation

A financing contingency protects the buyer. If the buyer cannot obtain financing within the specified time, the buyer may terminate the contract and recover the earnest money deposit, provided proper notice is given.

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