Most people obtain financing when purchasing a
house, condo, or co-op. In that case, the contract of sale will contain
a mortgage contingency clause making the sale contingent upon the buyer
obtaining a mortgage in a certain amount. If the buyer's loan
application is denied by the lending institution, the buyer can then
cancel the contract and get the down payment back.
order to benefit from the protections allowed by the mortgage
contingency clause the buyer must strictly abide by all its terms, i.