Posted by JPiper on January 16, 2000 at 10:46:34:
I’d say we’re on the same page…but you’re going to have difficulty using a financing contingency on a PacTrust offer. Matter of fact, if you qualify for financing using a financing contingency in my mind is a poor choice of contingency.
My preference would be to use an inspection clause…subject to inspection and approval thereof.
You also want to limit your liability under the contract to the earnest money deposit.
So what you have at this point is an agreement that you could conceivably walk away from based on the results of an inspection…and under which your maximum exposure is the earnest money, the amount of which might be comparable to option consideration.
Isn’t this in essence what an option gives you…the right to buy but the right to walk away? But in this case it’s in the format that the seller is accustomed to.