A buyer submits an offer with a condition for financing approval by 5:00 PM on Friday, March 15th. The buyer's mortgage is approved on Thursday, March 14th. What should the buyer do to proceed with the purchase?

Q: What is the correct answer to: A buyer submits an offer with a condition for financing approval by 5:00 PM on Friday, March 15th. The buyer's mortgage is approved on Thursday, March 14th. What should the buyer do to proceed with the purchase?

The correct answer is Provide written notice waiving the financing condition. Option B is correct because under Canadian real estate legislation, when a condition is satisfied, the benefiting party must provide written notice waiving the condition to formally remove it from the contract. This creates legal certainty and prevents disputes. Even though the mortgage was approved before the deadline, the condition remains in the contract until formally waived. Provincial real estate acts require clear documentation of condition waivers to protect all parties and ensure transaction clarity.

Q: What background knowledge is needed for this Contracts & Agreements question?

Real estate conditions are contractual clauses that must be satisfied for a transaction to proceed. Under provincial real estate acts like TRESA (Ontario), RESA (Alberta), and similar legislation across Canada, conditions protect parties by allowing contract termination if requirements aren't met. When conditions are satisfied, benefiting parties must provide written notice waiving the condition. This formal process removes the condition from the contract and provides legal certainty. The waiver process is mandatory regardless of when during the condition period the requirement is met, ensuring clear documentation and preventing future disputes about contract status.

Q: What is a good way to remember the answer to this Contracts & Agreements question?

W-ritten notice required, A-lways document satisfaction, I-mmediately after fulfillment, V-erify condition removal, E-nsure transaction proceeds. Think of waving goodbye to the condition - you must actively 'wave' it away with written notice, not just assume it disappears. When you see condition satisfaction questions, remember to WAIVE - look for the option requiring written notice to formally remove satisfied conditions from contracts.

Q: What exam tip applies to this Contracts & Agreements question?

For condition questions, remember: satisfaction ≠ automatic removal. Always look for the option requiring written waiver notice when conditions are met, regardless of timing within the deadline period.

Q: How does this Contracts & Agreements concept apply in real world practice?

A buyer's financing condition expires Friday at 5 PM, but their mortgage approval comes through Thursday morning. The buyer's agent immediately prepares a written waiver notice and submits it to the seller's agent, formally removing the financing condition. This allows the transaction to proceed without uncertainty, protects both parties legally, and demonstrates professional practice. Without this formal waiver, the seller might question whether the condition was properly satisfied, potentially causing transaction delays or disputes.

Question

Contracts & AgreementsConditions_and_waiversMEDIUM

A buyer submits an offer with a condition for financing approval by 5:00 PM on Friday, March 15th. The buyer's mortgage is approved on Thursday, March 14th. What should the buyer do to proceed with the purchase?

Answer Options

A

Nothing, as the condition is automatically satisfied

B

Provide written notice waiving the financing condition

C

Wait until after the condition deadline to confirm satisfaction

D

Request an extension of the condition deadline