A buyer, Michael, submits an offer on a house in Ottawa through his salesperson, Robert. Michael includes a condition requiring him to obtain satisfactory financing within 5 business days. The seller accepts the offer. On the fourth day, Michael's lender informs him that while financing is approved, the terms are not what he expected. What is Michael's best course of action regarding the condition?

Question: A buyer, Michael, submits an offer on a house in Ottawa through his salesperson, Robert. Michael includes a condition requiring him to obtain satisfactory financing within 5 business days. The seller accepts the offer. On the fourth day, Michael's lender informs him that while financing is approved, the terms are not what he expected. What is Michael's best course of action regarding the condition?

Answer options:

• He must waive the condition, as financing was technically obtained. ✅ He can declare the condition unfulfilled and terminate the agreement, as 'satisfactory' is subjective to him.
• He must renegotiate the terms of the deal with the seller.
• He loses his deposit if he doesn't proceed, as he failed to obtain suitable financing.

Correct answer: He can declare the condition unfulfilled and terminate the agreement, as 'satisfactory' is subjective to him.

Explanation: If a financing condition states that it must be 'satisfactory to the buyer,' the buyer has subjective discretion to determine if the financing terms meet their approval, as outlined in common real estate practice regarding conditions.