To protect a clients best interests, a salesperson inserts this condition in an agreement of purchase and sale for a multi-unit residential building.
‘This offer is conditional upon the Buyer arranging at the Buyer’s own expense, a new mortgage satisfactory to the buyer in the buyer’s sole and absolute discretion. Unless the buyer gives notice in writing delivered to the seller personally or in accordance with any other provisions for the delivery of notice in this agreement of purchase and sale or any schedule there too not later than ___ p.m on the __ day of ___, 20__, that this condition is fulfilled, this offer shall be null and void and the deposit shall be returned to the buyer in full without deduction. This condition is included for the benefitof the buyer and may be waived at the buyer’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein.
When discussing this clause with the buyer, the salesperson points out certain details. Which of the following is NOT a detail they would discuss?
1. This clause stipulates a time frame to negotiate the terms of the required financing with the lender
2. The buyer has latitude when declining financing as no specifics regarding the terms of the required mortgage have been included
3.This clause is not popular as it does not permit flexibility to the buyer when arranging financing
4. The buyer must make a 'good faith' effort to arrange the necessary financing