But if you set up your business better, your business will not hinge on this fact and life will be a lot easier because you never know who will or will not exercise.

In the event Seller is unable with the exercise of due diligence to satisfy said objections within thirty days after said notice, Buyer may, at Buyers option: (i) extend the time period for Seller to satisfy said objections, (ii) accept title subject to the objections raised by Buyer, without an adjustment in the purchase price in which event said objections shall be deemed to be waived for all purposes, or (iii) rescind this Agreement, whereupon the deposit described herein shall be returned to Buyer and this Agreement shall be of no further force and effect.

Buyer makes all investments and then the seller has new found motivation (performing property) to stop the option exercise?

INDEMNIFICATION: The borrower shall indemnify, defend and hold harmless the negotiator and/or buyer and all persons or assigns, regardless of responsibility, from all costs, expenses, suits, liabilities, damages, attorney fees and claims of every type, including but not limited to those arising out of injury to any person, or damage to any real or personal property to any person, including the borrower and said financial institution, for (i) any items resulting from the information furnished by the borrower, or (ii) those relating to the financial information, or ability or inability to pay for or continue to support the debt of which the negotiator and/or buyer is attempting to negotiate a short sale on the property by the negotiator and/or buyer, or any person in the negotiators and/or buyers firm, or the performance or exercise of any of the duties, powers or authorities granted to the negotiator and/or buyer by the borrower. ___________________________ Seller ______________ Date ___________________________ Seller ______________ Date ___________________________ Buyer ______________ Date

In the event Seller is unable with the exercise of due diligence to satisfy said objections within thirty days after said notice, Buyer may, at Buyers option: (i) extend the time period for Seller to satisfy said objections, (ii) accept title subject to the objections raised by Buyer, without an adjustment in the purchase price in which event said objections shall be deemed to be waived for all purposes, or (iii) rescind this Agreement, whereupon the deposit described herein shall be returned to Buyer and this Agreement shall be of no further force and effect.

nice exercise nick, and good answers by all...a good way to spice up a boring 'paperwork monday'

In this market, lenders are generally reluctant to exercise this option on a performing loan.

It is another great exercise in financial awareness.

That's why I see more 1031 investors exercising their power on the sell side.  

Please be gentle if this is a stupid question.