Course: A buyer's offer is accepted by the seller, and both parties have signed the purchase agreement. However, the buyer's financing falls through. What is the most likely outcome if the purchase agreement included a financing contingency? (EN)

Chapter: Financing Contingency and Contractual Outcomes: An Analysis of Real Estate Transactions

1. To elucidate the legal definition and operational mechanics of a financing contingency clause in real estate purchase agreements. This includes analyzing the specific wording commonly found in such clauses and their interpretation under applicable real estate law.

2. To provide a systematic framework for predicting the most likely outcome when a buyer's financing falls through despite the existence of a financing contingency. This involves examining the conditions precedent outlined in the contingency, the buyer's obligations to actively seek financing, and the timeframe within which the contingency must be exercised.

3. To equip participants with the knowledge necessary to advise clients and stakeholders on the legal and financial implications of financing contingencies, enabling them to make informed decisions and navigate potential disputes effectively. This will include analyzing case law examples and hypothetical scenarios to illustrate the practical application of the relevant legal principles.