Check (a) or (b):
| _____ | (a) | This Agreement is contingent upon the ability of the Buyer to secure a mortgage commitment from a lending institution of Buyer's choice for a mortgage in the amount of $___________ within forty-five (45) days of the signing of this Contract for a term of _____ years and at the prevailing rate of interest. The Buyer agrees to diligently pursue this mortgage commitment. If the Buyer does not notify the Seller in writing by the forty-fifth (45th) day from the signing of this Contract that Buyer has not obtained a mortgage commitment, the Seller shall assume that Buyer has obtained said commitment and will proceed with construction accordingly or that Buyer has waived his rights under the mortgage contingency clause. If Buyer is not able to secure a mortgage commitment within forty-five (45) days from the signing of this agreement, and so notifies Seller, then the Seller has the right, but not the obligation, to secure a mortgage commitment for the Buyer. Buyer agrees to cooperate fully with Seller by promptly completing all necessary application forms and/or other documents necessary for the processing of the mortgage loan application. Failure to cooperate may be considered a default by the Buyer in the fulfillment of his obligations pursuant to this Agreement. If neither the Buyer nor Seller can secure a mortgage commitment, then deposit monies, without interest, will be returned to the Buyer and the Buyer and Seller will be released from all further obligations under this agreement. |
| _____ | (b) | This Agreement is contingent upon the ability of the Seller to secure a mortgage commitment for the Buyer from _____________________________, in the amount of $__________________, for a term of __________ years, and at the interest rate of ________percent. The Buyer will pay points, each point representing one percent of the amount of the mortgage, to _______, for mortgage placement, along with mortgage application fees. The Buyer agrees to cooperate fully with Seller by promptly completing all necessary application forms and/or other documents necessary for processing the mortgage loan application. If Seller cannot secure such a mortgage commitment, then Seller will return all deposit monies, without interest, to the Buyer and the Buyer and Seller will be released from all further obligations under this agreement. |
Buyer agrees to be responsible for any fees, escrows and costs charged by the lending institution.
