In which scenario is the buyer allowed to terminate the contract according to the assumptions of loan balance?

The buyer is allowed to terminate the contract under the scenario where their cash at closing increases by a specified amount. This situation typically indicates that the buyer's financial situation has changed significantly, impacting their ability to secure the necessary financing or meet the terms of the contract. When a buyer's cash available at closing increases, it could affect their loan-to-value ratio or other financing parameters, potentially allowing them to seek a different loan product or renegotiate contract terms.

This clause serves as a protective measure for buyers, ensuring that they have the option to withdraw from the deal if their financial circumstances change in a way that would negatively impact their initial agreement. It acknowledges the dynamic nature of financial conditions in real estate transactions, giving the buyer the right to reassess whether entering into the contract under the new financial situation is still in their best interests.