Farr West and Plain City Utah Homes for Sale

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(b) Procedure if Loan Application is denied. If Buyer receives written notice from the Lender that the Lender does not approve the Loan (a "Notice of Loan Denial"), Buyer shall, no later than three calendar days thereafter, provide a copy to Seller. Buyer or Seller may, within three calendar days after Seller's receipt of such notice, cancel this Contract by providing written notice to the other party. In the event of a cancellation under this Section 2.3(b): (i) if the Notice of Loan Denial was received by Buyer no later than the Loan Denial Deadline referenced in Section 24(d), the Earnest Money Deposit shall be returned to Buyer; (ii) if the Notice of Loan Denial was received by Buyer after that date, the Earnest Money Deposit shall be released to Seller, and Seller agrees to accept as Seller's exclusive remedy the Earnest Money Deposit as liquidated damages

When the lender gives a loan denial, get it in writing from the lender and fax it to the other agent


We currently have a contract, that the buyer got verbal loan denial from the lender. The agent did an addendum stating that the buyer had received a loan denial and the buyer wanted to extend the contract deadlines to take the loan somewhere else. This addendum was never signed by the seller. The Agent did not send a loan denial letter to the other agent.

Remember you have a signed contract you have accepted terms, Any addendum you do to that contract needs to be in writing, accepted and signed by both the buyer and the seller before this addendum becomes part of the contract to change any terms.