Real Estate Law – How Does A Contract Protect Me In Terms Of Procuring Financing?
- The absolute most important provision in a contract of sale is called the mortgage contingency clause.
- If the contract is drafted correctly and your attorney protects you, this clause will state that the purchaser’s obligations under this contract are expressly contingent on being able to obtain a mortgage commitment from a lending institution.
- All of the terms are stated in the contract and if you are unable to obtain the financing, the seller must return the down payment.
- Anything less than that, you are not being protected adequately.
- Everything is time sensitive when buying a house.
This short informational real estate law video was provided by Arnold Drucker, an experienced Jackson Heights Real Estate Lawyer.