A buyer submits an offer with a condition to arrange financing at 5.5% interest rate within 10 business days. On day 8, they secure financing at 6.0% interest rate. What should the buyer do?
Correct Answer
D) Decide whether to waive the condition or let the agreement become void
The condition called for financing at 5.5%, so a 6.0% approval does not satisfy it. Because the condition is for the buyer's benefit, the buyer chooses: waive it in writing before the deadline and proceed at the higher rate, or let it expire unfulfilled, in which case the agreement becomes null and void under its terms.
Why This Is the Correct Answer
This answer reflects the buyer's position: the 5.5% condition has not been met, and as the benefiting party the buyer must decide before the deadline whether to waive it and proceed at 6.0% or let it lapse so the agreement becomes void.
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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?
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A buyer submits an offer with a financing condition that expires at 11:59 PM on Friday. The buyer's mortgage application is approved at 10:30 AM on Saturday. What is the legal status of the offer?