Asked and AnsweredI’m buying an apartment from a sponsor and the contract does not provide for a “mortgage contingency”. Is that a provision that I can negotiate into the contract?
Yes. Things have changed dramatically. In the past, sponsors were loath to grant a purchaser a mortgage contingency. In today’s economic times, with sponsors holding loads of inventory, a sponsor will usually not let a deal die because a purchaser wants a mortgage contingency included. Along those lines, a buyer should also ask for a funding contingency, as banks have a funny habit these days of issuing mortgage commitments on loans they decide down the road not to fund. With owner occupancy ratios low at the moment, it would be imprudent for a buyer of a new condo not to ask for the financing contingencies appropriate for the transaction under consideration.