A buyer submits an offer to purchase a residential property, including a financing condition with a deadline of 5:00 PM on Friday. The seller accepts the offer. On Friday morning, the buyer's broker informs the seller's broker that the buyer has secured financing and would like to waive the condition, but they are unable to provide a formal written waiver until Monday. Which of the following statements is true?

Question: A buyer submits an offer to purchase a residential property, including a financing condition with a deadline of 5:00 PM on Friday. The seller accepts the offer. On Friday morning, the buyer's broker informs the seller's broker that the buyer has secured financing and would like to waive the condition, but they are unable to provide a formal written waiver until Monday. Which of the following statements is true?

Answer options:

• The Agreement of Purchase and Sale becomes firm on Friday at 5:00 PM if no written waiver is submitted by then, as verbal notice is sufficient.
• The condition is automatically fulfilled if the buyer's broker states that financing is secured, even without a written waiver. ✅ The Agreement of Purchase and Sale will become null and void if the written waiver is not provided by the 5:00 PM deadline on Friday.
• The seller is obligated to grant an extension for the submission of the written waiver, given the buyer has communicated their intent.

Correct answer: The Agreement of Purchase and Sale will become null and void if the written waiver is not provided by the 5:00 PM deadline on Friday.

Explanation: Conditions in an Agreement of Purchase and Sale must be fulfilled or waived in writing by the specified deadline. According to contract law principles, a verbal communication of fulfillment or waiver is not legally binding if the contract specifies a written requirement. Therefore, without a written waiver by the deadline, the condition is not met, and the agreement would become null and void.