Common use of Financing Condition Clause in Contracts

Financing Condition. The Buyer’s obligation to deliver the Purchase Price is conditioned upon the ability of the Buyer to obtain a loan with the Property as security for such loan in the amount of $_________________________ or ___% of the Purchase Price at an interest rate not to exceed ___% payable in monthly installments over not less than _______ years or on such other terms approved by the Buyer (a “Qualified Loan”). Buyer shall make a good faith application for the loan within 10 days after the Effective Date of this Agreement. A commitment by a lender to make a loan subject to approval of title, appraisal and/or final inspection of improvements, shall constitute obtaining a Qualified Loan and satisfy the condition provided herein unless the Buyer notifies the Seller of the failure of a commitment to satisfy the requirements of a Qualified Loan within 2 days of the Buyer’s receipt of the loan commitment. In the event the said loan cannot be closed within 60 days of the Buyer’s application, due to delays in the completion of the Property, the Seller may, at Seller’s option, pay discount points and/or buy-down costs necessary to maintain the interest rate of the loan within one percentage point of the committed interest rate. In the event that the prior committed interest rate or a rate within one percentage point of said original rate cannot be obtained by the Seller paying discount points or buy-down costs, the Buyer, at the Buyer’s option, may either proceed to Closing or terminate this Agreement. Buyer’s termination of this Agreement based on the financing condition described herein shall automatically entitle the Seller to receive the Deposit as a fully earned payment, whether such termination is based upon the failure to obtain a loan or election to terminate after an interest rate has increased for any reason (including construction delays).

Financing Condition. The Buyer’s obligation to deliver the Purchase Price is conditioned upon the ability of the Buyer to obtain a loan with the Property as security for such loan in the amount of $_________________________ $ or ___% of the Purchase Price at an interest rate not to exceed ___% payable in monthly installments over not less than _______ years or on such other terms approved by the Buyer (a “Qualified Loan”). Buyer shall make a good faith application for the loan within 10 days after the Effective Date of this Agreement. A commitment by a lender to make a loan subject to approval of title, appraisal and/or final inspection of improvements, shall constitute obtaining a Qualified Loan and satisfy the condition provided herein unless the Buyer notifies the Seller of the failure of a commitment to satisfy the requirements of a Qualified Loan within 2 days of the Buyer’s receipt of the loan commitment. In the event the said loan cannot be closed within 60 days of the Buyer’s application, due to delays in the completion of the Property, the Seller may, at Seller’s option, pay discount points and/or buy-down costs necessary to maintain the interest rate of the loan within one percentage point of the committed interest rate. In the event that the prior committed interest rate or a rate within one percentage point of said original rate cannot be obtained by the Seller paying discount points or buy-down costs, the Buyer, at the Buyer’s option, may either proceed to Closing or terminate this Agreement. Buyer’s termination of this Agreement based on the financing condition described herein shall automatically entitle the Seller to receive the Deposit as a fully earned payment, whether such termination is based upon the failure to obtain a loan or election to terminate after an interest rate has increased for any reason (including construction delays).