From time to time, the Seller will be anxious to confirm that the Buyer truly has the right financing.
Assuming that to be the case, here’s what a clause would look like:
The Seller shall have the right to terminate this Agreement by giving written notice to the Buyer on or before ______ September, 2017, in the event that the Buyer has not delivered evidence of suitable financing to the Seller satisfactory to the Seller, in the Seller’s sole and absolute discretion. If the Seller exercises such right to terminate, then the deposit shall be returned to the Buyer forthwith without interest or deduction, and the Agreement shall be null and void.
This is a clause written as a condition subsequent. It would follow 2 days after the Buyer has delivered the Waiver or Notice of Fulfillment as the case may be indicating that they have financing or alternatively that they have the funds necessary to close the transaction.
Even though, the Buyer is prepared to take the risk and proceed, there may just be too much at stake for the Seller simply to agree. The Seller may in fact have another much bigger deal dependent upon the success of this one.
The Seller wants to see the financing commitment, determine if all the funds are in place and confirm that there are no financing conditions that cannot be satisfied.
This clause will provide the Seller with 2 days to satisfy himself about the Buyer’s financing.
Brian Madigan, LL.B., Broker