What must a buyer of real property do to avoid penalties in the financing clause?

To avoid penalties in the financing clause, a buyer of real property must satisfy the terms specified in that clause. The financing clause outlines the conditions under which the buyer is expected to secure financing for the purchase. This may include obtaining a loan, meeting certain credit standards, or adhering to specific timelines for securing the funds to complete the transaction.

When a buyer adequately fulfills these terms, they ensure that the sale proceeds smoothly and that they remain in compliance with the contractual agreements. Failure to meet the stipulated conditions can lead to penalties, such as the loss of earnest money or even legal action from the seller.

Completing the transaction in cash, negotiating a lower price, or submitting a broker's commission does not directly address the requirements of the financing clause. These actions may relate to different aspects of the real estate transaction but do not specifically mitigate the obligations laid out within the financing agreement. Thus, meeting the specified terms is the key to avoiding penalties.