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?
Correct Answer
C) Immediately notify the seller in writing that the condition cannot be satisfied
Under standard Ontario condition wording, the agreement would become null and void at 5:00 PM on March 15th if the buyer gives no notice of fulfillment or waiver, so notice is not legally needed to end it. Promptly telling the seller in writing is still the right step: it is honest, it lets the seller return to the market sooner, and it starts the mutual release needed to return the deposit.
Why This Is the Correct Answer
This is correct because the buyer knows the condition will fail and has chosen not to pursue other lenders. Telling the seller immediately and in writing is the honest, professional course; it lets the seller relist or accept another buyer sooner and leads directly to a mutual release so the deposit can be returned.
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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?
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A buyer submits an offer with a financing condition that must be satisfied within 5 business days. On day 4, the buyer's mortgage application is approved but they want better terms. What can the buyer legally do?