Financing Contingency in Florida Contracts
The financing contingency in a Florida FAR/BAR purchase contract establishes the terms, deadlines, and procedures for the buyer's mortgage financing, protecting both parties if financing cannot be obtained.
FAR/BAR Contract Requirements
- Buyer must apply for financing within the specified timeframe
- Buyer must exercise diligent effort to obtain a loan commitment
- Written notice required if financing is denied
- Contingency specifies loan type, amount, term, and rate cap
- Failure to provide timely notice may waive the contingency
Diligent Effort Standard
- Submit a complete loan application promptly
- Provide all documentation requested by the lender
- Respond to lender requests in a timely manner
- Maintain financial condition (no new debt, no job changes)
- Cooperate with the appraisal and underwriting process
Extensions
Extensions require mutual written agreement via addendum before the original deadline expires. Sellers are not obligated to grant extensions.
Related Terms
- Contract — The FAR/BAR purchase agreement
- Earnest Money — Deposit at risk if contingency waived
- Closing — Final financing verification
Barnes Walker Real Estate
Barnes Walker's real estate attorneys review financing contingency provisions in Florida purchase contracts, protecting buyers' and sellers' interests. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC