Question

If the buyer cannot meet the loan objection deadline, what will happen?

1) The buyer's broker may inform the seller verbally to keep the agreement from terminating
2) Written mutual agreement is required to extend the deadline
3) The transaction will terminate
4) The buyer's broker must send a certified letter to the seller to keep the agreement from terminating

Answer 1

A written mutual agreement is required to extend the loan objection deadline. Without it, the transaction may terminate if the buyer cannot meet the deadline.

Step-by-step explanation:

If the buyer cannot meet the loan objection deadline, the typical action that should be taken is a written mutual agreement to extend the deadline. Verbal agreements, while perhaps made in good faith, are not considered binding in such a context.

A certified letter might be used for formal notices but does not replace the need for a written extension of the deadline. Without a written agreement to extend or waive the objection deadline, if this deadline passes without the loan objection being resolved, the transaction can terminate according to the contract's terms.