Here is a challenge .. see if you can help Solve this case.... who is in the right? Buyer or Seller?
Regarding Financing....

15. "FINANCING: This Agreement is subject to Buyer obtaining an approved conv mortgage of 80% of purchase price,at an interest rate not to exceed mkt % and amortized over a period of 30 years."

15-a Buyer to provide Seller with letter from lender showing that Buyer has made application and, subject to verification of information, is qualified for the loan requested within 7 days from the Effective Date of the Agreement."

The Effective date of Agreement is December 10th. Buyer has complied.


15-b "Buyer to provide Seller with mortgage commitment letter from lender showing that Buyer has secured the loan commitment within 30 days of the Effective Date of the Agreement (Effective date of agreement is December 10th)."

The buyer has not complied.

15-c "If either of these conditions, is not met within said time periods, Seller may terminate this Agreement and the earnest money shall be returned to Buyer."

The seller did not terminate this agreement. The seller acted in good faith with the knowledge and concern for the buyers. Due to the holidays, the buyer's appraisal could not be performed until January 6. The Seller allowed the contract to proceed to give the buyers time since the appraisal was done only 4 days prior to the deadline for the buyers to provide seller with a mortgage commitment letter.

The Question is... Regarding the Sales & Purchase Agreement, is item #15-b considered as being met?
If so why and if not, why not?

15-d After (a) and (b) are met, buyer is obligated to notify Seller in writing if the lender notifies Buyer that it is unable to or unwilling to proceed with the financing. Any failure by Buyer to notify Seller within 48 hours of receipt by Buyer of notice from the lender shall be a default under this agreement.

Who is in the right Buyer or Seller?


Just a little something to open up some discussion

I look forward to hearing your opinions