Which of the following is a condition precedent that must be fulfilled or waived before an Agreement of Purchase and Sale becomes unconditional?
Correct Answer
A) The buyer's mortgage application being approved by the specified deadline
A condition precedent is an event that must occur, or be waived, before the agreement becomes firm, and mortgage approval by a deadline is the classic example. Only the party the condition was written to benefit, here the buyer, can rely on it or waive it. The seller stays bound during the condition period and cannot walk away because the condition is still open.
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