My buyer received written notice by the seller that he requires my client to waive her contingency on the sale of her current property or the contract will terminate, as stated in the addendum. Everything is on track with the sale of her current property, so she decided to waive the contingency and gave timely written notice using Notices Regarding Contingency Under Addendum for Sale of Other Property by Buyer (TAR 1912). Now, the seller wants my client to provide proof that the she can obtain her loan even if the sale of her current property doesn’t happen before our closing. Can the seller force my client to do this?

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  • My buyer received written notice by the seller that he requires my client to waive her contingency on the sale of her current property or the contract will terminate, as stated in the addendum. Everything is on track with the sale of her current property, so she decided to waive the contingency and gave timely written notice using Notices Regarding Contingency Under Addendum for Sale of Other Property by Buyer (TAR 1912). Now, the seller wants my client to provide proof that the she can obtain her loan even if the sale of her current property doesn’t happen before our closing. Can the seller force my client to do this?

No. The Addendum for Sale of Other Property by Buyer doesn’t require the buyer to provide evidence to support her decision to waive this contingency. The only requirements in the addendum are that the buyer notify the seller in writing within the time stated and deposit the additional earnest money with the escrow agent in a timely manner.

Buyers should consider the risks of waiving this contingency when they don’t already have the proceeds from the sale of another property. A buyer would be in default on her contractual obligations if she waives the contingency and then fails to close solely because she didn’t receive the sale proceeds.

Source: TAR

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