Question

Jim and Evan enter into a real estate contract. The contract allows Evan to get a mortgage at 5% interest. But after due diligence, Evan can only get a mortgage at 8% interest. What will happen to the real estate contract

Answer 1

Since Evan can only get a mortgage at 8% interest instead of at 5%, the real estate contract suffers termination by contingency.

What is a contingency?

A contingency in a real estate contact is a term that is required to happen before its closing.  

Thus, termination by contingency will allow Jim to terminate the contract without consequences.

Learn more about termination by contingency at https://brainly.com/question/19567994