Question: I am a real estate agent, whose customer is buying a home in a few weeks. His mortgage financing contingency expired yesterday, but the good news: he was approved for a mortgage loan! I am worried, however, because we did not give a copy of his mortgage commitment to the seller. Can the seller cancel the deal?

Answer: No need to worry. The seller cannot cancel the contract.

Your buyer’s financing contingency provides a few weeks window of opportunity to cancel the deal, if he cannot get a loan. This window closes on the contingency’s expiration date. So, it is important for the buyer’s peace of mind to get a commitment letter from his bank, before this date.

The buyer doesn’t need to give a copy of the commitment letter to the seller. It is, however, a professional courtesy to tell the seller about the financing status. This will help the seller’s peace of mind.

On the flip side, if a buyer can’t get financing, you must inform the seller, in writing, prior to the contingency expiration date. In this case, you may need to prove the lack of financing, by giving the financing denial letter to the seller. Check the P&S (purchase and sale) for the proper method for providing such notice.

Priority Law advises on real estate transactions.

This article was originally published in the Lowell Sun and is for informational purposes only and not to be relied on as legal advice, in any manner.