Contracts are powerful legal documents. Within these papers are clauses, provisions and legalese that can be extremely important if issues arise during a transaction. One example involves the sale of property.
How can a single phrase mean the difference between a successful deal or a failure?
This is best explained with an example: What if the seller accepts an offer but that buyer is later unable to get a loan to cover the cost of the purchase? In this instance, a careful review of the offer is required. The contract used to propose the offer may contain contingencies, such as a financing contingency. This contingency is specifically tailored to address the buyer's ability to get a loan.
Some contracts will contain this contingency, others will not. Even if this contingency is present, the case is not automatically lost. A further review is required. During this review it is important to determine if there are specifics within the provision that address the situation. The provision may discuss how the funding can be verified. Will a preapproval letter from a lending institution suffice, or is more required?
If the contingency only called for an approval letter from a reputable lending agency, a challenge may survive. Depending on the wording of the provision, the seller may be able to challenge a buyer's attempt to back out of the purchase. Even if pushing the deal forward is not a realistic option without a loan, the seller could still use this to challenge a request to refund a deposit.
What if a final deal is not an option?
The overarching point: remedies are available in these situations. Sellers have options. An experienced real estate attorney can review your situation and discuss which course of action is best for your interests.