A broker has submitted a purchase agreement to a seller for his client Mark. In order to protect his client, the broker wrote into the contract, “offer is subject to buyer’s obtaining a loan at an annual interest rate no higher than 5.5%”. if the prevailing rate for the type of loan that Mark has applied for is 6 percent, what is the outcome if the seller were to accept this offer and Mark qualifies for the prevailing rate? A - The seller could cancel the agreement because Mark‘s broker added something to the purchase agreement. B - Mark‘s broker would have to submit a commitment letter within 3 days of the contract. C - The seller automatically covered because the loan contingency was 17 days. D - The loan contingency allows the buyer to cancel the escrow.
Question 5
A broker has submitted a purchase agreement to a seller for his client Mark. In order to protect his client, the broker wrote into the contract, “offer is subject to buyer’s obtaining a loan at an annual interest rate no higher than 5.5%”. if the prevailing rate for the type of loan that Mark has applied for is 6 percent, what is the outcome if the seller were to accept this offer and Mark qualifies for the prevailing rate?
A - The seller could cancel the agreement because Mark‘s broker added something to the purchase agreement.
B - Mark‘s broker would have to submit a commitment letter within 3 days of the contract.
C - The seller automatically covered because the loan contingency was 17 days.
D - The loan contingency allows the buyer to cancel the escrow.
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