If the Contract does not close after Buyer delivers written notice of the recipe of the Loan Commitment to Seller, Buyer must pay Seller the deposit unless the failure to close is due to one of four occurrences. The first is a default by the Seller. The second is when conditions of the Loan Commitment that are related to the property have not been met; however, this is only relevant if the conditions were not specifically waived in the Contract. The third is if the appraisal done by Buyers Lender is deemed to be insufficient to meet the terms of the Contract. Lastly, the fourth occurrence is when the loan was not funded because of a financial failure on the part of the Buyers Lender. If these occurrence arise, the deposit must be returned to the Buyer and the Buyer and Seller would therefore be released from any obligations under the Contract.
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