A buyer submitted an offer on a property for $450,000, conditional on financing by 5:00 PM on July 20th. On July 19th, their financing falls through. The buyer's agent communicates this to the seller's agent. On July 20th, the buyer finds an alternative lender who offers financing, but it's not ideal. The buyer instructs their agent to submit a waiver for the financing condition. What is the situation?

Question: A buyer submitted an offer on a property for $450,000, conditional on financing by 5:00 PM on July 20th. On July 19th, their financing falls through. The buyer's agent communicates this to the seller's agent. On July 20th, the buyer finds an alternative lender who offers financing, but it's not ideal. The buyer instructs their agent to submit a waiver for the financing condition. What is the situation?

Answer options:

• The buyer cannot waive the condition now, as it previously failed. ✅ The buyer can waive the condition and proceed, as long as it's done before the deadline.
• The seller has the right to refuse the waiver since the financing previously fell through.
• The contract is automatically terminated upon the initial financing failure, regardless of waiver.

Correct answer: The buyer can waive the condition and proceed, as long as it's done before the deadline.

Explanation: A condition precedent is for the benefit of the party imposing it (unless stated otherwise), and that party generally retains the right to waive the condition as long as it is done before the condition's expiry or before the other party has acted on its failure. The fact that financing initially fell through does not negate the buyer's right to waive and proceed if they find an alternative solution within the condition period.