Contracts

In West Virginia, a purchase contract states that the buyer must obtain financing approval within 15 days. On day 17, the buyer is still waiting. The seller may:

ADo nothing because the contract is still valid
BDeclare the buyer in default and potentially void the contract, depending on the contract language✓ Correct
CExtend the contingency automatically for another 15 days
DSue the lender for failing to approve the loan on time

Explanation

If a contract contains a specific deadline for a contingency and the buyer fails to meet it, the seller may have the right to declare the contract void and retain the earnest money, depending on how the contingency is written.

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