The clause that protects a financed buyer's deposit, with deadlines that do the real work.
The contingency is not passive. The FAR/BAR forms require the buyer to apply within a stated number of days, pursue approval diligently and in good faith, and notify the seller by the deadline if approval hasn't been obtained. A buyer who never completes the application, or who torpedoes their own approval (new car loan mid-process), can't hide behind the contingency.
In competitive situations buyers sometimes waive financing to compete with cash. That converts a loan denial into a lost deposit. A middle path is shortening the loan approval period rather than deleting it. For sellers, our market pages show what share of closings are actually cash — worth knowing before demanding waived financing.
Loan approval and appraisal are distinct: a loan can be approved subject to value. Whether a low appraisal lets the buyer exit, renegotiate, or must be covered in cash depends on the appraisal provisions of the specific contract — read them together with the financing clause.
Talk to Jon or Brittany directly. We'll answer specific questions or connect you with the right Momentum agent.
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