A buyer's offer contains a financing condition that expires on Friday at 6:00 PM. On Thursday, the buyer's mortgage application is denied and no other lender will approve the loan. What is the buyer's best course of action?
Correct Answer
D) Tell the seller promptly in writing and sign a mutual release
Under standard Ontario condition wording, a financing condition that is not fulfilled or waived by the deadline leaves the agreement null and void, so the buyer does not need to do anything to escape it. The best course, though, is to tell the seller promptly in writing so the seller can remarket the property, and to sign a mutual release, because the deposit held in trust is normally released only on the parties' written agreement or a court order.
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A buyer submits an offer with a financing condition that expires at 5:00 PM on March 15th. The buyer's mortgage is approved on March 16th at 10:00 AM. What is the legal status of the contract?
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A buyer submits an offer with a financing condition that must be satisfied by 5:00 PM on March 15th. At 6:00 PM on March 15th, the buyer's agent calls to say the financing has been approved. What is the legal status of this offer?