A buyer's offer includes a condition for financing approval within 10 business days. On day 8, the buyer's mortgage application is denied, but they find a private lender willing to provide financing at a higher rate. What are the buyer's options?
Correct Answer
A) They can waive the financing condition and proceed with the private lender
The buyer has the discretion to either waive the financing condition if they're satisfied with the alternative financing arrangement, or they can choose not to waive it if the terms are unsatisfactory. Financing conditions typically allow buyers to secure financing on terms satisfactory to them, not just any available financing.
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Previous Question
A buyer's offer includes a condition for financing approval. If the buyer's mortgage application is denied, what options does the buyer have?
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An Ontario buyer's offer has a standard financing condition: unless the buyer gives written notice that the condition is fulfilled within five business days, the offer is null and void. On day 4 the lender declines the mortgage. What is the buyer's safest course?