A Promise to Purchase for a property in Québec City includes a financing condition, allowing the buyer 10 business days to obtain a mortgage. On day 8, the buyer's bank informs them that they cannot secure the requested financing. What is the buyer's broker's primary obligation at this point?

Question: A Promise to Purchase for a property in Québec City includes a financing condition, allowing the buyer 10 business days to obtain a mortgage. On day 8, the buyer's bank informs them that they cannot secure the requested financing. What is the buyer's broker's primary obligation at this point?

Answer options: ✅ To immediately inform the seller's broker in writing that the financing condition has not been met, providing supporting evidence if requested, and assisting the buyer in formally withdrawing the Promise to Purchase.

• To recommend the buyer try applying with another financial institution, extending the financing condition deadline with a counter-offer.
• To advise the buyer to proceed with the purchase anyway, assuming they can find alternative financing before the deed of sale.
• To notify the seller's broker verbally that financing is uncertain and see if the seller is willing to wait.

Correct answer: To immediately inform the seller's broker in writing that the financing condition has not been met, providing supporting evidence if requested, and assisting the buyer in formally withdrawing the Promise to Purchase.

Explanation: If a condition like financing is not met within the stipulated timeframe, the buyer's broker must assist the buyer in formally declaring the condition unfulfilled and withdrawing the Promise to Purchase in writing. This is crucial for avoiding legal dispute and ensuring the buyer's deposit is returned, as per the OACIQ Promise to Purchase form conditions.