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Commitment Letter & Approval Of Loan
To: [name and address of loan applicant]
Re: [subject of loan commitment]
We have approved your application for a Loan on [description of property]. This is to be secured by the Mortgage on your fee interest in the property.
This Loan will be evidenced by your note. The terms and conditions of the Loan are as follows:
1. Amount. ---------- dollars ($----------) for land purchase ---------- dollars ($----------) for construction of condominium units.
2. Description of Property. [Description].
3. Improvements. [Number] condominium units and [other improvements, e.g., pools].
4. Mortgage. [Name of creditor] holds first lien upon the property.
5. Note. You must repay the Loan in [number] months at ---------- percent (----------%) interest.
6. Commitment Fee. This shall be ---------- dollars ($----------). ---------- dollars ($----------) shall be payable upon acceptance of this commitment; ---------- dollars ($----------) shall be payable at closing.
7. Expiration Date. [Date].
8. Closing Date. [Date].
9. Conditions to Closing. Furnish to us [number] days prior to closing date:
a. Title insurance binder;
b. Survey showing easements, rights-of-way, and other land rights;
c. Verification from utilities stating that water and electricity to the property will be available;
d. Governmental approval, including zoning and other permits;
e. Insurance policies re: workers' compensation, casualty, and other insurance;
f. Proof of corporate existence;
g. Governmental approval of this offering as a condominium;
h. Purchase contract for the property; and
i. Certified financial statements.
10. Costs. All costs, including attorney fees and search fees, are to be paid by Borrower.
11. Closing. The closing shall take place at [day, time, and location].
12. Acceptance. If you wish to accept, please execute and return to us the enclosed copy of this letter, along with your check for the commitment fee on or before the expiration date.
If you do not accept, this commitment will be void, unless renewed in writing by us. If accepted, it will remain in effect until the closing date, unless renewed in writing by us.
[name of lender]
The undersigned hereby accepts the foregoing commitment, subject to the attached letter.
[name of borrower]