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Cardozo Law Review

Abstract

Mr. and Mrs. Buyer found the perfect apartment to purchase to start their life together as husband and wife. The seller's attorney prepared the sales contract by filling in the blanks of a standard residential real estate form contract. Both parties signed the contract and the Buyers delivered a check representing a ten percent earnest money deposit. The contract contained a mortgage contingency clause permitting the Buyers to cancel the contract in the event that the Buyers could not, after applying for a loan from an institutional lender, obtain a mortgage with a ninety percent loan ratio. To save time and money the Buyers did what many home purchasers do; they went to a mortgage broker for one-stop shopping to obtain a mortgage. The Buyers had sufficient financial resources to qualify for a ninety percent loan. The mortgage broker, as authorized by each bank with which it had a relationship, handled the time consuming tasks of compiling all the relevant financial information for the loan package, registering the loan with the bank, arranging an appraisal of the property, and determining whether the Buyers met the bank's loan guidelines.

Keywords

Banking and Finance Law, Real Estate, Brokers, Finance (General), Business and the Law

Disciplines

Banking and Finance Law | Law

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