Residential Real Estate:
Mortgage contingency clauses state that if the buyer cannot get a mortgage within a certain period of time, the whole deal can be called off. This clause in the home purchase contract makes the agreement conditional on the buyer’s ability to get a mortgage on the property. Unfortunately, there is no standard mortgage contingency clause. The seller wants to close the sale regardless of high interest rates or questionable terms the mortgage carries. The buyer should be sure if they can’t get the mortgage they were expecting, they can walk away and recover the down payment.