A Glendale buyer's financing contingency requires loan approval by day 21. All of the following would satisfy this contingency EXCEPT:
Correct Answer
D) Receiving a loan denial letter on day 15
A loan denial letter does not satisfy the financing contingency; it allows the buyer to cancel the contract. Option A clearly satisfies the contingency with full approval. Option B satisfies it with conditional approval. Option C satisfies it with a commitment letter, which typically constitutes approval subject to standard conditions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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A Tempe buyer includes an HOA document review contingency with a 10-day deadline. On day 8, the buyer receives the HOA documents revealing a $50,000 special assessment due next month. The buyer wants to cancel but their agent is unavailable. What should the buyer do?
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