If a buyer fails to fulfill a condition in their Agreement of Purchase and Sale (e.g., 'subject to financing') within the specified timeframe, what is a common outcome for the agreement?

Question: If a buyer fails to fulfill a condition in their Agreement of Purchase and Sale (e.g., 'subject to financing') within the specified timeframe, what is a common outcome for the agreement?

Answer options:

• The seller is automatically entitled to keep the deposit. ✅ The agreement typically becomes null and void.
• The buyer is granted an automatic extension to fulfill the condition.
• The buyer must proceed with the purchase regardless.

Correct answer: The agreement typically becomes null and void.

Explanation: If a condition precedent is not met or waived by the specified date and time, the Agreement of Purchase and Sale typically becomes null and void, and the deposit is usually returned to the buyer, assuming no bad faith.