"Buyer Beware: Don’t Get Caught Holding a Conditional Loan Approval at Closing."
In an article published on March 21, 2024, in Daily Business Review, Matt Kramer discusses security deposit disputes caused by buyers’ inability to satisfy pre-closing purchase-financing conditions.
“With rising interest rates and more stringent lending standards for both residential and commercial properties, security deposit disputes caused by buyers’ inability to satisfy pre-closing purchase-financing conditions are also increasing,” says Kramer. “The possible scenarios that can derail purchase financing are manifold and often beyond the buyer’s control. If a buyer cannot obtain unconditional loan approval prior to the expiration of the loan approval period, the safest approach may be to reach an agreement with the seller to extend the loan approval period through closing.”
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