What happens if a buyer assuming a loan finds the loan balance is less than expected according to the Residential Contract to Buy and Sell?

In the context of the Residential Contract to Buy and Sell in Colorado, if a buyer finds that the loan balance is less than expected, the buyer has the option to terminate the contract by providing written notice. This provision is designed to protect the interests of the buyer, as it allows for an exit from the contract if the financial circumstances do not align with their expectations or initial understandings regarding the loan.

This situation typically arises in instances where the buyer assumed an existing loan, and upon review, the loan balance does not match the anticipated figures. Giving the buyer the ability to terminate under these circumstances ensures they are not locked into a contractual obligation that may not reflect the financial reality they expected or relied upon when entering the agreement.

Armed with this right, the buyer can make informed decisions about proceeding with the purchase or exploring alternative options if the funding does not meet their needs. This mechanism is important in keeping the negotiation process transparent and fair for all parties involved in the transaction.