Buyers Al and Amanda Pauls purchase of the Baxter property is contingent on their receiving a VA loan. As it turns out, they are unable to secure the loan. Which of the following is false?

The Pauls could terminate the contract.

If they terminate the contract, their earnest money will be refunded.

They could waive the contingency and move forward with the sale.

They must split the earnest money with the Baxters for their trouble.