1031 Exchange

A basic pre qualification letter from the lender or its representative
states: (i) Buyer has made full and complete written loan application; (ii) Lender has
reviewed Buyer's financial statement, bank records, employment status, tax returns, preliminary credit
report, and other relevant documents and finds no material problems that could prevent
approval for the new loan or assumption as specified in the contract; and (iii) Based on the
information provided by Buyer, lender believes the Buyer has adequate down payment, closing
costs, and residual funds to consummate the purchase.

Most contract also state: In the event Buyer fails to provide Seller with
this pre qualification letter, Seller may elect to terminate this contract by giving written notice
to Buyer within ten business days of the deadline set in this subsection.

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