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Real Estate Law

TWO HOMES, TWO MORTGAGE CONTINGENCIES, TWO LOAN APPLICATIONS, BUT ONLY ONE LOAN, WHO WINS?

Topic: Real Estate Transactions

The Appeals Court of Massachusetts in Alfeo v. Dinsmore, 68 Mass. App. Ct. 249 (2007) found that a mortgage contingency clause contained in a Purchase and Sale Agreement must be read literally. Therefore, when the clause stated that an “application to one financial institutional lender shall satisfy Buyer’s Diligent efforts under the agreement” the Buyer only needed to apply to one lender. The fact that the Buyer simultaneously applied for, and received, a separate loan to purchase a separate home was irrelevant.

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Meltzer Law Offices

From Meltzer BLawG Offices posted 2007-03-05.

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