Notes From the Legal Hotline: September 2022
September 1, 2022
Q: The financing contingency date in the contract has passed and the buyer has not informed us of whether they received a commitment – is the deal dead? A: Not necessarily. The passing of any contingency date without an extension or notification of withdrawal by the buyer simply means that the contingency is no longer available to the buyer, but the deal may proceed. If the buyer has not obtained an extension and then is unable to obtain financing to purchase the property, the buyer may terminate the transaction, however, any deposit funds may be subject to forfeiture as liquidated damages to the seller. As a best practice, buyers and buyer agents should always be certain to maintain open lines of communication with the seller and seller’s agent and request an extension if there is any question about their…