A buyer submits an offer conditional on obtaining satisfactory financing by 5:00 PM on Friday. The financing is approved Thursday afternoon, and the buyer's agent promptly delivers a Notice of Fulfillment of Condition (NFC) to the seller's agent at 3:00 PM on Thursday. Unbeknownst to the buyer's agent, the seller had, at 10:00 AM on Thursday, sent a 'Notice to Fulfill' demanding a waiver of the condition within 24 hours due to a competing offer. On Friday morning, the seller informs the buyer that the deal is off, citing the buyer's failure to waive the condition within 24 hours of the seller's notice. Is the seller's position legally sound under REBBA 2002 principles?

Question: A buyer submits an offer conditional on obtaining satisfactory financing by 5:00 PM on Friday. The financing is approved Thursday afternoon, and the buyer's agent promptly delivers a Notice of Fulfillment of Condition (NFC) to the seller's agent at 3:00 PM on Thursday. Unbeknownst to the buyer's agent, the seller had, at 10:00 AM on Thursday, sent a 'Notice to Fulfill' demanding a waiver of the condition within 24 hours due to a competing offer. On Friday morning, the seller informs the buyer that the deal is off, citing the buyer's failure to waive the condition within 24 hours of the seller's notice. Is the seller's position legally sound under REBBA 2002 principles?

Answer options: ✅ No, the buyer fulfilled the condition before the 24-hour waiver period from the 'Notice to Fulfill' had expired, making the seller's termination invalid.

• Yes, once a 'Notice to Fulfill' is issued, the buyer must waive the condition, not fulfill it, to keep the agreement alive.
• Yes, the seller's Notice to Fulfill overrides any prior fulfillment by the buyer's agent unless the buyer re-submits a new NFC.
• No, the seller cannot issue a 'Notice to Fulfill' if the condition's deadline has not yet passed, making their notice premature and ineffective.

Correct answer: No, the buyer fulfilled the condition before the 24-hour waiver period from the 'Notice to Fulfill' had expired, making the seller's termination invalid.

Explanation: A Notice to Fulfill is typically used to shorten a condition period when a seller has a backup offer. However, if the original condition is fulfilled (not waived) prior to the expiry of the shortened period specified in the Notice to Fulfill, the contract becomes firm. The buyer, in this case, fulfilled the condition before the 24-hour period from the seller's notice expired.