Financing condition

Definition

A clause in an offer that gives the buyer time to secure financing. If the lender declines, or has not finished its review by the set date, the buyer can walk away without penalty, provided the seller is notified properly and on time. The deadline is negotiated in the offer: a short one reassures the seller but leaves little room if the lender is waiting on an appraisal or a document. Example: offer accepted on the 1st with 10 days for financing. If the appraisal is not back by day 8, ask for a written extension before day 10, otherwise the condition lapses.