Buyer financing contingency Clause Samples
A buyer financing contingency is a contractual provision that makes the buyer’s obligation to complete a purchase dependent on their ability to secure financing, such as a mortgage loan, under specified terms. In practice, this clause allows the buyer a set period to obtain loan approval; if they are unable to do so, they may cancel the contract without penalty and recover their deposit. The core function of this clause is to protect buyers from being forced to proceed with a purchase if they cannot obtain the necessary funds, thereby reducing financial risk and uncertainty.
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Buyer financing contingency. This Offer (Check One►) □ is □ is not contingent upon Buyer obtaining financing (“Buyer Contingency”). If yes, this Offer is contingent upon ▇▇▇▇▇ being able to obtain: □ first mortgage loan commitment □ rehabilitation/construction loan commitment within days of acceptance of this Offer for not less than $ for a term of not less than years with an initial interest rate not to exceed % per annum with monthly payment not to exceed $ for principal and interest. ▇▇▇▇▇ agrees to pay all customary financing costs (including closing costs, to apply for financing promptly and to provide evidence of application promptly upon request by Seller. If financing is not available on the terms stated in this Offer (and ▇▇▇▇▇ has not already delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same including copies of lender(s) rejection letters or other evidence of unavailability. If Seller notice is not timely given, this Offer shall be null and void.
Buyer financing contingency. This stock purchase agreement is contingent upon buyer obtaining financing for the cash portion of the purchase price prior to closing. Buyer agrees to pursue the same with diligence. Seller agrees to provide financial statements required by purchaser’s lenders.