Posted by River City on November 14, 2005 at 13:37:21:
It sounds like your purchase agreement is contingent upon the buyer’s ability to obtain financing. If this is the case, the lender should deny the loan application, and issue written notice of the denial, aka Adverse Action notice. Using the written notice, the buyer should be refunded the earnest money deposit.
However, all of this should be set out in the purchase agreement.
Conditional Offer- Real Estate Board Waiver - Posted by Louise LeBlanc
Posted by Louise LeBlanc on November 13, 2005 at 11:30:33:
In this document, it states that the offer is conditional upon the Buyer arranging satisfactory financing within 5 business days of acceptance of the offer.
If the Buyer has been working on obtaining finanacing, and the 5 day period has passed, but the Buyer realizes that he cannot get financing without paying off other debts, etc, and that the cost is simply too high, does he lose any of the $10k he put down in trust as part of the Agreement of Puchase and Sale.