Hi, I'm Annie Fitzsimmons, and I'm your Washington Realtors Legal Hotline lawyer. In this video today, we're talking about paragraph 3 of the financing contingency form 22-a. This discussion necessarily feeds off of the discussion that we had about paragraph 2 in the last video, so if you haven't seen the paragraph 2 video, please go back and watch that before you watch this video. The importance of that discussion, though, that I want to bring forward to this video, is a reminder that the financing contingency is a document put into the transaction by the buyer. It's the buyer's request of the seller for the seller to take the seller's property off the market while the buyer goes to figure out whether or not they can get financing. Before we go any further, I want to ask you a question. If this transaction fails to close at the closing table, will there be a loss suffered? And the answer, absolutely and undeniably, has to be yes. The buyer is going to lose, at a minimum, their appraisal fee, their inspection fee, and maybe their earnest money. The seller is going to lose all of that marketing time, and when they put the house back on the market, if the price hasn't gone down, then they are still putting the house back on the market. And anybody who knows anything about this industry knows there is a stigma attached to any property that goes back on the market, and some explanation is required as to why that first sale failed. So yes, there will be loss suffered. The question that the financing contingency presents is who, between the buyer and the seller, is going to carry the burden of that loss. And when the buyer makes an offer that includes...
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Video instructions and help with filling out and completing Where Form 8854 Termination
