A buyer's offer has a home inspection condition (7 days) and a financing condition (10 days) requiring a mortgage satisfactory to the buyer in the buyer's sole discretion; unless the buyer gives written notice by day 10 that financing is arranged, the agreement is void. The inspection finds major issues, but the buyer waives the inspection condition on day 6. On day 9 the lender approves the mortgage only if repairs are finished before closing. What is the buyer's position?
Correct Answer
D) The buyer can rely on the still-open financing condition and let the deal end
Waiving the inspection condition ended only that condition; the financing condition was still open on day 9. It requires financing satisfactory to the buyer in the buyer's sole discretion, and an approval tied to repairs the buyer does not control can honestly be found unsatisfactory. If the buyer gives no notice of fulfilment by day 10, the agreement is void under the clause's own wording.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Contracts & Agreements Question
Background Knowledge for Contracts & Agreements
Real World Application in Contracts & Agreements
Common Mistakes to Avoid on Contracts & Agreements Questions
Key Terms
More Contracts & Agreements Questions
What is the primary purpose of an Agreement of Purchase and Sale (APS) in a real estate transaction?
A buyer submits an offer with a financing condition that expires at 11:59 PM on Friday. The buyer's mortgage application is approved at 10:30 AM on Saturday. What is the legal status of the offer?
In Ontario, what is the significance of the 'irrevocable' period in an Agreement of Purchase and Sale?
Under what circumstances can a buyer waive a home inspection condition after discovering significant defects during the inspection?
Which of the following is NOT typically considered a standard condition in an Agreement of Purchase and Sale?
- → Which of the following is NOT typically considered an essential element for a valid contract under Canadian common law?
- → A buyer in BC wants to assign their pre-sale contract for a new development condo to a third party. Which statement is correct?
- → A commercial property purchase agreement includes a condition for environmental site assessment. The buyer's environmental consultant discovers soil contamination but the buyer decides to proceed anyway. To complete the purchase, the buyer must:
- → 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?
- → In an exclusive listing agreement, what obligation does the seller have if they find a buyer themselves during the listing period?
- → Under the doctrine of 'time is of the essence' in real estate contracts, what is the legal significance when a party fails to meet a specified deadline?
- → What happens when a buyer waives a condition in an Agreement of Purchase and Sale?
- → Which of the following is a fundamental requirement for a valid contract under Canadian common law?
- → Sarah lists her home with ABC Realty under an exclusive listing agreement that expires on June 30th. On July 15th, she sells the property to a buyer who first viewed the home during an open house hosted by ABC Realty in May. Assuming a standard holdover clause exists, what is the likely outcome?
- → What happens when a condition in an Agreement of Purchase and Sale is not fulfilled by the specified deadline?
People Also Study
Real Property Law
60 questions
Agency & Professional Ethics
60 questions
Mortgage & Real Estate Finance
60 questions
Land Use & Planning
50 questions
Related Study Resources
Helpful Resources
Previous Question
An Agreement of Purchase and Sale requires title free of registered restrictions, except registered restrictions or covenants that run with the land, provided they are complied with. Before the requisition date, the buyer's lawyer finds a registered covenant, fully complied with, that prevents the buyer's planned use. Can the buyer terminate the agreement?
Next Question
In a listing agreement, what does the term 'exclusive right to sell' mean for the listing brokerage?