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?
Correct Answer
D) Waive the condition and proceed, or let it expire, voiding the contract
Since the financing condition has been satisfied (mortgage approved), the buyer can either waive the condition and proceed with the transaction or choose not to waive it and let the condition period expire, making the contract null and void. The buyer cannot unilaterally extend the condition period or modify other contract terms without seller agreement.
Why This Is the Correct Answer
Option D correctly identifies the buyer's two legal options when a financing condition is satisfied. Under Canadian real estate law, including TRESA and provincial regulations, once a condition is satisfied, the buyer can either waive the condition (accepting the approved financing and proceeding) or allow the condition period to expire without waiving it, which voids the contract. The buyer retains this choice even when financing is approved, as satisfaction doesn't automatically obligate completion. This protects the buyer's right to exit if the approved terms are unsatisfactory.
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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?
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A buyer submits an offer with a home inspection condition that must be satisfied by 5:00 PM on Friday. The buyer's agent calls the listing agent at 4:45 PM Friday to verbally waive the condition. What is the legal status of this waiver?