A buyer submits an offer on a residential property in Grande Prairie with a specific condition: 'This Offer is conditional upon the Buyer obtaining satisfactory financing by 5:00 PM on June 15th, 2024.' On June 15th at 4:30 PM, the buyer informs their associate that they have not yet received formal approval but 'feel confident' it will come through. What is the immediate consequence if no further action is taken by 5:00 PM?

Question: A buyer submits an offer on a residential property in Grande Prairie with a specific condition: 'This Offer is conditional upon the Buyer obtaining satisfactory financing by 5:00 PM on June 15th, 2024.' On June 15th at 4:30 PM, the buyer informs their associate that they have not yet received formal approval but 'feel confident' it will come through. What is the immediate consequence if no further action is taken by 5:00 PM?

Answer options:

• The contract automatically becomes unconditional, and the buyer is bound to purchase the property. ✅ The contract becomes null and void, and the deposit is returned to the buyer.
• The buyer is granted an automatic 24-hour extension to fulfill the condition.
• The seller can unilaterally cancel the contract and keep the deposit.

Correct answer: The contract becomes null and void, and the deposit is returned to the buyer.

Explanation: Unless formally waived or extended with the seller's consent, if a condition is not fulfilled by the specified time and date, the Residential Purchase Contract typically becomes null and void, and the deposit is returned to the buyer as per the terms of the condition in the AREA Residential Purchase Contract.