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Can someone explain to me how this works?
After the home Inspection contingency is removed, the buyer has 21 days to provide the sellers with written conditional commitment for specified financing.
Can the buyer void the contract in anyway at this point? (Without losing the Earnest deposit)
FINANCING CONTINGENCY WITH AUTOMATIC EXTENSION.
A. This Contract is contingent on Buyer Delivering to Seller by 9 p.m. 21 Days after Date of
Ratification (“Financing Deadline”) written conditional commitment(s) for Specified Financing.
B. If Buyer has not Delivered the written conditional commitment(s) by Financing Deadline, this
contingency will continue up to, and including, Settlement Date. However, upon expiration of
Financing Deadline, Seller may at Seller’s option Deliver Notice to Buyer that Buyer has three
(3) days to void the Contract. If Buyer does not void the Contract within three (3) days following
Delivery of Seller’s Notice, this financing contingency is removed and the Contract will remain
in full force and effect without this financing contingency.
C. Buyer may void this Contract by Delivering to Seller, prior to the satisfaction or removal of this
contingency, a written rejection from the lender(s) to whom Buyer has applied for Specified
Financing. However, Buyer will be in Default whether or not this financing contingency has been
removed if Settlement does not occur on Settlement Date for any reason other than Default by
Seller.
D. Nothing herein shall prohibit the parties from mutually agreeing to terms acceptable to both
parties in writing
per your first post, financing contingency continues beyond the 21 days, up until settlement, unless seller gives notice to remove contingency.
once removed, if home inspection is removed, possibly could use HOA doc review to void assuming buyer hadn't already received.
the language in your second post looks awfully like what I use here in Northern VA. If so, the financing contingency forms have been updated with different language.
per your first post, financing contingency continues beyond the 21 days, up until settlement, unless seller gives notice to remove contingency.
once removed, if home inspection is removed, possibly could use HOA doc review to void assuming buyer hadn't already received.
the language in your second post looks awfully like what I use here in Northern VA. If so, the financing contingency forms have been updated with different language.
So based on my seconf post/paragraph, until when can buyer cancel/void the contract? Assume HI AND HOA contingencies have expired.
You really need to consult with your own agent/broker to have explained the particulars of the contracts used in your state, and in your particular transaction. Every contact is different and the small details matter so we can’t responsibly answer this in a general way.
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