Ok, so in the new Far Bar “As-IS” contract there is an out for a Buyer AFTER the Loan Approval Date when : “b) property related conditions of the Loan Approval (but specifically excluding the Appraisal) haven’t been satisfied.”
As a practical matter this provision will rarely be applicable as most loans will NOT have any conditions in them related to the property itself, beyond the appraisal requirements and that’s specifically excluded.
However, it MAY be applicable in FHA and VA underwritten loans as those may have a property condition contained in them such as repair or replace a stove. HUD has a Minimum Property Standards for FHA loans and the VA has similar standards.
The clause could be applicable if the Property is say damaged or destroyed by a hurricane but that scenario is covered under another section as a “casualty loss”. The “force majure” clause would only be a delay in a closing.
