Sarah, a licensed real estate associate, is helping her client, David, purchase a detached home in Canmore. The Residential Purchase Contract includes a condition for David to secure financing within five business days. On the fifth day, David informs Sarah that his lender requires an additional 24 hours to finalize the approval. What is Sarah's most appropriate action?

Question: Sarah, a licensed real estate associate, is helping her client, David, purchase a detached home in Canmore. The Residential Purchase Contract includes a condition for David to secure financing within five business days. On the fifth day, David informs Sarah that his lender requires an additional 24 hours to finalize the approval. What is Sarah's most appropriate action?

Answer options:

• Advise David to immediately sign a waiver for the financing condition, assuming the approval will come through. ✅ Draft an amendment to the Residential Purchase Contract extending the financing condition period, subject to seller's agreement.
• Recommend David instruct her to notify the seller that the condition has not been fulfilled, effectively terminating the contract.
• Suggest David proceed without a financing condition and hope for the best, as the deal is almost closed.

Correct answer: Draft an amendment to the Residential Purchase Contract extending the financing condition period, subject to seller's agreement.

Explanation: To avoid a breach of contract or an unfulfilled condition, the most appropriate action is to seek an extension from the seller through an amendment, as per the AREA Residential Purchase Contract's provisions for conditions.