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CHANGES TO FARBAR AS IS RESIDENTIAL CONTRACT FOR SALE AND PURCHASE, PART 7 OF 10

Posted by Sami Thalji | Dec 01, 2021 | 0 Comments

More Revisions to paragraph 8(b):

The fifth change the buyer now has until the end of the loan approval period to inform the seller in writing that loan approval was obtained. Previously, the buyer was required to promptly advise the seller upon receipt of the approval. Also note, new language specifies a buyer who does not obtain loan approval within the loan approval period may remain in the transaction under the following circumstances: • The buyer is satisfied with his ability to obtain loan approval and to close • The buyer delivers written notice of this to the seller within the loan approval period. A buyer in these circumstances (one without loan approval, but confident he'll obtain a loan and with the ability to close, and who notifies the seller of this), will continue to be eligible to benefit from Paragraph 8(b).

The sixth change provides for new language which specifies that the buyer who obtains loan approval may terminate the contract if the buyer cannot timely meet the terms of the loan approval, after using good faith and diligent effort. To receive his deposit back, the buyer must deliver a written termination notice to the seller prior to the end of the loan approval period. Although this language did not previously appear in the contract, the concept is not new. If it were otherwise, such buyers would always lose their deposit, despite the fact that they had no ability to meet the conditions of the loan approval.

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...

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