I see. Thank you for clarifying the situation for me.
If there is no written agreement signed by both parties, then arguably there is no binding contract yet to cancel since the statute of frauds typically requires that an agreement involving real property
must be in writing to be enforceable.
In addition, even if there is a written contract, where the contract is conditioned on the buyer obtaining financing for the property and the buyer is unable to obtain the financing through their reasonable efforts and through no fault of their own, then the buyer may typically terminate the agreement without recourse by the seller since the condition has not been met.
This appears to be the situation here, whether the contract is in writing or not, the buyer could normally terminate it because the contingency has not been met through no fault of their own. The notice to terminate for this reason should be communicated to the seller in writing.
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