A buyer's offer is conditional on 'the buyer arranging financing satisfactory to the buyer at prevailing rates'. The clause states that the condition is for the buyer's sole benefit and may be waived by the buyer by written notice before the deadline. Rates rise from 5.5% to 6.2%, and the buyer still wants to waive the condition and firm up the deal. The buyer's agent says the buyer cannot waive it because the new rate is not 'satisfactory'. Is the agent right?
Correct Answer
A) No, because the buyer may waive a condition written for the buyer's sole benefit
The clause says the financing condition is for the buyer's sole benefit and may be waived by the buyer by written notice before the deadline. A condition that protects only the buyer can be given up by the buyer even when the available rate is worse than hoped, so the agent's advice is wrong. Whether 6.2% is 'satisfactory' matters only if the buyer wants to rely on the condition to end the deal; by waiving it, the buyer takes on the higher-rate risk.
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A buyer's offer includes a condition for home inspection to be completed within 5 business days. On the 4th business day, the buyer's inspector finds significant structural issues but recommends getting a structural engineer's assessment, which cannot be completed before the deadline. What are the buyer's legal options?
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A buyer's offer includes the condition 'Subject to buyer obtaining satisfactory financing at an interest rate not to exceed 6.5% per annum.' The buyer's bank approves a mortgage at 6.8% interest. Two days before the financing condition expires, competing lender offers 6.2% financing but requires additional documentation that cannot be completed before the deadline. What is the buyer's strongest legal position?