McCoy v. Brown

Opinion

PETERS, J.

Contracts for the sale of real property often contain mortgage contingency clauses. In this case, the mortgage contingency clause required the purchasers to apply for a mortgage commitment “at the prevailing rate . . . and [to] pursue the same diligently.” The principal issue is whether the purchasers, having learned that they were ineligible for a mortgage at “the prime rate,” were required to exercise due diligence to pursue alternate mortgage options. The trial court resolved this issue in favor of the vendors. The purchasers have appealed. We affirm the judgment of the…