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All Loan Exhibits-Seller’s Right to to Request Evidence of Buyer’s Ability to Close
In paragraph 8 in the VA, FHA and USDA Loan Exhibit and 9 in the Conventional Loan Exhibit, there is language explaining an often overlooked Seller right related to financing.
If the Financing Contingency ends without Buyer terminating this Agreement, Seller shall have the right, but not the obligation, to request that Buyer provide Seller with written evidence of Buyer’s financial ability to purchase the Property (“Evidence”). A copy of a loan commitment from each institutional mortgage lender from whom Buyer is seeking mortgage financing to purchase the Property stating the type, amount and terms of the loan(s) and the conditions for funding the loan(s), shall be deemed sufficient Evidence. The provision of such Evidence is not a guarantee that the mortgage loan(s)will be funded or that Buyer will close on the purchase of the Property. Buyer shall have seven (7) days from the date Seller delivers notice to Buyer requesting such Evidence to produce the same. No request for such Evidence shall be made by Seller less than seven(7) days from the date of Closing.
In the following paragraph, it’s explained that if the Buyer doesn’t provide the info within 7 days, the Seller must notify the Buyer of the default and give them three additional days to cure the default. After that, the Seller has the ability within the next several days to terminate the agreement.
It’s not that common in our current market to have 10+ days between the end of the financing contingency and the closing date, but in cases when a Seller wants options for a backup, it may be helpful to accept a primary that takes the above timing into consideration.
Always seek counsel from your Broker for more advice on GAR forms.
Buyer and Seller acknowledge and agree that the following item(s) in or on the Property cannot be properly inspected, due to seasonal weather or other conditions: ________________________________________________. Seller warrants that said items are in good working order and repair as of the Binding Agreement Date. If, for a period of _________ days from the closing date of this Agreement, Buyer uses such items for the first time and finds that such items are not in good working order and repair, Seller shall be responsible, at Seller’s sole expense, to repair and/or replace any defect(s) in said item(s) at that time. If Buyer does not use such item(s) for the first time within the period specified above, or if the defect(s) of which the Buyer complains were caused by the Buyer or his guests, agents or representatives, Seller’s obligation to repair or replace defects in such items shall terminate. This provision shall survive the closing.
Monday, October 9, 2023
Columbus Day
Friday, November 10, 2023
Veterans Day
Thursday, November 23, 2023
Thanksgiving
Friday, November 24, 2023
Day after Thanksgiving
(not a Federal holiday but Closing Attorneys are closed)
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