April 29th, 2024 at 2:21 pm
A. Yes, if the buyer has not removed the loan contingency.
B. Yes, regardless of whether the buyer has removed the loan contingency.
C. No, as a matter of law.
D. No, as according to the RPA.
Answer: Answer B is the correct answer! Under the RPA, a buyer gives the seller and seller’s agent the authority to contact the buyer’s lender to determine the status of any buyer’s loan specified in the RPA or any alternate loan (see paragraph 5C(3) of the RPA). The RPA specifically states that it does not matter if the buyer does or does not have a loan contingency.
Of course, it’s possible that, when you contact the buyer’s lender, he or she refuses to discuss the buyer’s loan status with you. If that happens, you can inform the buyer’s lender that the buyer has already given you authority under paragraph 5C(3) of the RPA. If that doesn’t work, you can inform the buyer’s agent that the buyer must immediately tell the buyer’s lender to discuss the loan status with you directly as provided for in the agreement.
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