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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.