Finance
A Wisconsin seller accepts a purchase offer that is contingent on the buyer obtaining a mortgage at no more than 6.5% interest. The market rate rises to 7%. What is the likely result?
AThe buyer must proceed at 7% or be in breach
BThe financing contingency is not met; the buyer may void the contract and recover earnest money✓ Correct
CThe seller must pay the rate difference
DThe contract automatically extends 30 days for the rate to drop
Explanation
If the financing contingency specifies a maximum rate and the buyer cannot obtain a loan at or below that rate, the contingency is not satisfied. The buyer may void the contract and recover their earnest money.
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