Date Plus Three Days Warning Notice!

I promised yesterday that I will review in more details Date Plus Three Days Warning Notice!

There are several sections in Real Estate Purchase Contract (REPC) regarding this rule, this is the first one.

Let's say for easy explaination, your loan denial deadline was set as Monday, January the 1st. It means that the buyer, not seller, needs to get the Loan Denial Notice by this deadline to be of any benefit to the buyer.

Any notices received after this date would still allow buyer to cancel the agreement, but the earnest money would not be protected. In simple words, it is all about earnest money, as a seller, you cannot sue or otherwise make the buyer purchase your house here.

There is particurlar section in REPC which will govern the exact day and time of when the counting would sart, and it also states that uness another time has been agreed upon, the time that would apply would be 5:00 pm Mountain Time.

So, let's say you are a buyer, and you receive your Loan Denial Notice on the 1st, you would have 3 additional calendar days to communicate this to the Seller, and still receive the earnest money back

As a seller, you would ask why? One of the good reasons, I can think of is it allows buyer possibly find another mortgage company to make the purchase happen.

So, let's say you are a seller, and you receive this notice no later than January 4th, keep in mind Buyer still has a right to keep a deposit. And, you now have a right (Buyer has the same right) to cancel this contract by providing written notice to the other party within next three calendar days.

So, in January 7, you wrote that notice, and Buyer kept the Easnest Money, and you, as a seller, hopefully received a better offer from people who qualify for the mortgage. :)