What is the legal effect of a financing condition in an offer?
A) There is no contract until the vender provides the seller with financing.
B) The transaction will not proceed unless the buyer's lender grants a mortgage.
C) The lender must approve the price,deposit,and method of payment.
D) The lender will be given control of the money needed to complete the deal.

Question

Quizplus · Accepted Answer

The financing condition in an offer means that the transaction is contingent upon the buyer obtaining financing (usually a mortgage) from a lender. If the buyer cannot secure the necessary financing, the deal will not go through, protecting the buyer from being obligated to purchase a property they cannot afford.

What Is the Legal Effect of a Financing Condition in an Offer