Quote:
Originally Posted by X5 Meister
Yes title insurance and property inspection and all that, but that is down the road and takes place during escrow. The point is that if he puts a downpayment down now with no loan contingency and those things end up causing the financing to fall through...it happens plenty of times, then he's out his downpayment.
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Not necessarily. Say he signs a contract tonight with a due dilligence period. The financing will take weeks to be finalized, so he can set up an inspection in the next few days. If there are any major issues, he can back out before the financing is ever an issue. As long as the sale is not "as is".
I am not 100% positive on the this but, I am pretty sure that B-Line can put a simple stip in the contract stating that the title must be clean or it is a deal breaker. If the owner wont do that, then don't sign.
Actually, I am looking at a typical F-20 purchase and sales agreement contract for an appraisal I am doing right now and there is paragraph in there regarding the title that states;
if the seller fails or is unable to satisfy valid title objections at or before closing, or any extension thereof, which would prevent the seller from providing good and marketable title to the property, then buyer, amoung other remedies, may terminate the agreement upon written notice to the seller.
So basically, title or structural issues are considered seperate from financing, so he should be able to back out due to those issues without sacraficing his earnest money.