Patrick, an Ohio buyer, submits an offer with a financing contingency specifying a conventional loan at no more than 6.5% interest. His lender approves the loan but at 7.0% interest. Under Ohio practice, can Patrick invoke the financing contingency to terminate?
Correct Answer
D) Yes, because the contingency specified a maximum interest rate that was not met
When a financing contingency specifies a maximum interest rate, the buyer can invoke the contingency if the approved rate exceeds that maximum. Since Patrick's contingency specified no more than 6.5% and the approval came at 7.0%, the financing terms do not meet the contingency requirements, giving Patrick the right to terminate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
More Oh Specific Contracts Forms Questions
Jack, an Ohio buyer, has a purchase agreement with an inspection contingency. The home inspector discovers that the home has knob-and-tube wiring in the attic, which is still functioning. Jack's insurance company informs him that they will not insure the property unless the wiring is replaced. Under Ohio practice, what is Jack's best option?
Peter, an Ohio buyer, asks his agent about the difference between actual damages and liquidated damages. Under Ohio law, which statement correctly distinguishes the two?
Frank, an Ohio buyer, discovers that the seller's listing agent provided false information about the property's zoning. Frank suffered financial losses as a result. Under Ohio law, can Frank file a claim with the Ohio Real Estate Recovery Fund?
Lucy, an Ohio buyer, asks her agent about the statute of limitations for breach of a written real estate purchase agreement. Under Ohio law, how long does the buyer have to file a breach of contract lawsuit?
Megan, a first-time Ohio buyer, asks her agent what 'specific performance' means as a remedy for breach of contract. Under Ohio law, which description is correct?
- → Grace, a buyer in Ohio, wants to know the difference between rescission and breach of contract. Under Ohio law, what is rescission?
- → Allen, an Ohio buyer, believes the seller's agent made negligent misrepresentations about the property's condition during the sale. Under Ohio law, who may Allen pursue for damages?
- → Oliver, an Ohio buyer, wants to understand the concept of 'mutual rescission' in the context of his purchase agreement. Under Ohio law, what is mutual rescission?
- → Richard, an Ohio seller, breaches a purchase agreement. The buyer decides not to pursue the property but wants monetary compensation for expenses and losses. Under Ohio law, what type of remedy is the buyer seeking?
- → Tom, an Ohio buyer, refuses to close on a property after all contingencies have been satisfied and all deadlines have passed. Under Ohio contract law, what type of action has Tom committed?
- → Kevin, an Ohio buyer, discovers after closing that the seller fraudulently concealed a major foundation defect on the Residential Property Disclosure Form. Under Ohio law, what remedy can Kevin pursue?
- → Martha, an Ohio seller, provides a warranty deed to the buyer at closing. After closing, the buyer discovers an existing lien that was not disclosed. Under Ohio deed warranty law, what remedy does the buyer have?
- → Keith, an Ohio buyer, defaults on a purchase agreement. The seller does not have a liquidated damages clause in the contract. Under Ohio law, what must the seller prove to recover damages?
- → Jill, an Ohio buyer, wants to know whether punitive damages are available in a breach of contract case. Under Ohio law, which statement is correct?
- → Eva, an Ohio buyer, sues the seller for breach of the purchase agreement and wins a judgment of $25,000. The seller refuses to pay. Under Ohio law, what enforcement options does Eva have?
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Previous Question
Olivia, a buyer in Summit County, Ohio, has a purchase agreement contingent on the sale of her current home within 60 days. On day 45, the seller receives a non-contingent offer from another buyer. Under the kick-out clause in Olivia's purchase agreement, what happens?
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Ashley, a buyer in Mahoning County, Ohio, has a purchase agreement with a title contingency. The title search reveals a neighbor's fence encroaches 2 feet onto the property. Under Ohio practice, what is the purpose of the title contingency?