Mortgage contingency clause

Learn about the definition for this legal term.

What is Mortgage contingency clause?

As part of the real estate transaction, the residential buyer will have a certain number of days in which to apply in good faith for and obtain a mortgage loan commitment; if there is not a written commitment in that time, then the sale is usually terminated and the down payment money is returned to the purchaser.

Further Reading

For more detailed information, see our related Real Property terms:

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