I think you are partially right having actually lived through this debacle.
Also, is a verbal agreement binding? I was given advice by my lawyer that it was safe to move out (and even bid on a new home) based only on a verbal commitment from the buyer that they had recieved their mortgage...
I have a contract of sale for the sale of my condo. My lawyer made mistakes on the contract and failed to enter a mortgage contingency "comittment date" and entered the wrong amount that the buyer had to obtain a mortgage for. The offer from the buyer was for a 70% mortgage. The contract was...