Financing condition clause example
WebA financing condition is a clause in your offer to purchase that gives you a period of time to confirm you are able to get a mortgage approval for the home you want to buy. That … WebThe following examples are intended to be used in connection with the Morgan Lewis M&A Academy Representations and Warranties training serve as models for discussion and …
Financing condition clause example
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WebJan 21, 2014 · Here are some contingency clauses to consider in your real estate purchase contract. 1. Financing Contingency. A financing contingency clause states something like, “Buyer’s obligation to purchase the property is contingent upon Buyer obtaining financing to purchase the property on terms acceptable to Buyer in Buyer’s sole opinion.”. WebA financing contingency is probably the most common type of buyer's contingency. As one might expect, a financing contingency dictates that the purchaser's obligation to close on the transaction is contingent on their ability to acquire appropriate (and/or desirable) financing of the purchase price. Both residential and commercial transactions ...
WebDec 15, 2016 · Articles. Material Adverse Change (“MAC”) clauses, sometimes referred to as Material Adverse Effect (“MAE”) clauses, are found in many financing commitments and can often be heavily negotiated. In spite of this, MAC clauses are often the most ambiguously drafted clauses in a financing agreement and are thus often subject to … WebDec 7, 2024 · The contents and clauses of the Term Sheet vary from transaction to transaction. Below is a sample term sheet for an acquisition of a company (with an …
WebThis condition is referred to as the “Financing Condition.” If checked in the affirmative, Sections 8.3(a) and 8.3(b) apply; otherwise they do not. If the Financing Condition applies, Buyer agrees to work diligently and in good faith to obtain the Loan. (a) Notwithstanding anything to the contrary contained in Section 8.1, in the event … Clause: Deed of Trust. Contract Type. Jurisdiction. Country. Include Keywords. … WebFeb 27, 2024 · A contingency is a condition that needs to be met before an offer can proceed. In other words, it’s kind of like a safety net. Therefore, an appraisal contingency means that if your home doesn’t appraise for the amount you’ve agreed to pay, you can walk away from the deal with your deposit. An appraisal determines the fair market value of ...
WebCondition Precedent. As a condition precedent to the effectiveness of this Amendment Number Three, Seller shall have paid to Buyer (i)the May 2014 Extension Commitment Fee and (ii)the first installment of the June 2014 Renewal Commitment Fee (each as defined in the Pricing Side Letter). SECTION 2. Condition Precedent.
WebJan 20, 2024 · Types of Conditional Clauses. There are six main types of conditional sentences based on likelihood and tense: general rule/law of nature, open future condition, unlikely future condition, impossible … hyphen technologiesWebSpecifically, such representation clauses need to (1) include date range limitations for the period from the most recent audited financial statements to the date of signing the financing agreement, (2) be represented and warranted only at the time the financing agreement was entered into as a condition to execution of the agreement, and (3) not ... hyphen transportation managementWebJan 18, 2024 · How contingencies affect home sales. Contingency clauses are very common in real estate deals: in January 2024, about 75% percent of purchase contracts had at least one contingency, according to the National Association of Realtors. [1] Because they add complexity to the sale, they're also a major cause of delays — and some issues can … hyphen symbol vs underscoreWebIf you’d like more information about current practice in drafting Material Adverse Effect clauses, a terrific resource is Nixon Peabody’s Annual MAC Survey. The 2024 Survey is available here. Erik Lopez is the M&A lawyer responsible for this blog. Feel free to contact Erik at [email protected] or +1-214-601-1887. hyphen transportWebDebt Financing Condition. Purchaser shall have obtained the debt portion of the Acquisition Financing from such sources and in such amounts and on such terms and … hyphen to avoid ambiguityWebMar 28, 2024 · The three big numbers it needs to include are: The agreed-upon sales price. The non-refundable deposit amount. The remaining loan balance. “On the contract, there’s a spot for the agreed-upon sales price and the earnest deposit down, then it clearly identifies the loan balance in the line items,” explains Waters. hyphen used correctlyWebFinancing contingency clause samples The Company's Tender Offer Recommendation Statement described a potential buyer, Financial Acquirer B ("Acquirer B"), who on … hyphen title capitalization