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?
Correct Answer
D) The offer is void because the condition was not satisfied by the deadline
When a condition in a real estate contract specifies a deadline, that deadline is legally binding and must be met precisely. Since the financing condition was not satisfied by 5:00 PM on March 15th as required, the offer becomes null and void automatically, regardless of whether the financing was later approved.
Why This Is the Correct Answer
Option D is correct because real estate contract conditions with specified deadlines are legally binding and must be satisfied precisely by the stated time. Under Canadian real estate law and TRESA provisions, when a financing condition deadline passes unmet, the offer automatically becomes null and void. The principle of 'time is of the essence' applies strictly - the 5:00 PM deadline was absolute, and the 6:00 PM notification, though only one hour late, renders the entire offer invalid. No party can unilaterally extend or waive this deadline once it has passed.
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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?
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A buyer submits an offer with a financing condition that must be satisfied by 5:00 PM on March 15th. On March 14th at 3:00 PM, the buyer's mortgage application is denied, and the buyer decides not to seek other financing. What should the buyer do?