medium · National Real Estate Exam contracts
A purchase agreement contains a contingency stating the contract is voidable if the buyer cannot obtain a loan at an interest rate of 7% or lower. The buyer finds a loan at 7.5% but decides to proceed with the purchase anyway.
What must the buyer do?
- Execute a contingency removal or waiver
- Nothing, as contingencies expire automatically after 10 days
- Ask the seller for a price reduction to compensate for the higher rate
- Amend the contract to change the interest rate term
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