Define: Mortgage-Contingency Clause

A mortgage-contingency clause is a provision in a real estate contract that allows the buyer to back out of the agreement if they are unable to secure a mortgage loan within a specified timeframe.

This clause protects the buyer from being obligated to purchase a property if they are unable to obtain financing. It provides an opportunity for the buyer to cancel the contract and recover their earnest money deposit.

Yes, a mortgage-contingency clause can be waived if the buyer is confident in their ability to secure a mortgage loan or if they are willing to take the risk of losing their earnest money deposit.

If the buyer cannot secure a mortgage within the specified timeframe, they can exercise their right to cancel the contract and typically receive a refund of their earnest money deposit.

Yes, the seller has the right to refuse a mortgage-contingency clause. However, this may deter potential buyers who are not willing or able to purchase a property without the protection of a mortgage-contingency clause.

Yes, a mortgage-contingency clause can be added to an existing contract through an amendment or addendum agreed upon by both parties.

Yes, a mortgage-contingency clause can be modified if both parties agree to the changes. However, any modifications should be clearly documented in writing to avoid any misunderstandings or disputes.

Yes, a mortgage-contingency clause can be extended if both parties agree to an extension. This may be necessary if the buyer needs more time to secure a mortgage loan.

In most cases, a mortgage-contingency clause cannot be waived after the contract is signed unless both parties agree to the waiver. It is important to consult with an attorney before attempting to waive any contractual provisions.

Yes, a mortgage-contingency clause can be enforced in court if one party fails to comply with its terms. However, it is always advisable to try to resolve any disputes through negotiation or mediation before resorting to litigation.