In the current environment of rising credit rates and too low usury rates, many loan applications are being turned down by banks. Real estate loan broker Meilleurtaux estimates that nearly 30% of cases are no longer financeable. Better protect yourself. A clause contained in the sales contract allows the buyer to have no cost to pay if he does not obtain the mortgage.
A suspensive condition included in the compromise
The sales contract is an essential step in the real estate buying and selling process, before the signing of the final deed in front of the notary and the delivery of the keys.
This contract, which commits a seller and a buyer to the sale of a property and its price, contains conditions precedent, some of which are required by law. The best known and most widespread is the condition precedent for obtaining a loan. Therefore, when the purchase is financed by a loan, the sale takes place only if the buyer obtains the loan. This clause must be mentioned in the sales contract if you are applying for a loan.
Between 45 and 60 days to apply for a loan
According to article L313-41 of the Consumer Code, the period of validity of the suspensive condition for obtaining the loan cannot be less than one month. In general, the buyer therefore has between 45 and 60 days to apply for a loan from banking institutions. This period is mentioned in the sales contract. In the summer, due to holidays, it is advisable to negotiate a period of 75 days with the seller.
No penalties to pay
If no bank wishes to finance the buyer’s project, the sale cannot take place and is therefore canceled. He is returned the security deposit that he paid to the seller at the time of signing the agreement (in principle 10% of the value of the property). He has no penalty to pay.
It is only a matter of time ? Then the buyer can ask his bank for a loan agreement certificate showing that it is an administrative delay beyond his control.
What if the purchase project is financed by multiple mortgages?
To finance his real estate project, the buyer can apply for a conventional loan but also a zero-interest loan (PTZ), for example. A single loan refusal is enough to cancel the sale without penalties for the buyer.
What if he hadn’t solicited any bank?
If the purchase agreement stipulates that the purchase will be financed by a mortgage, the buyer is obliged to urge the banks to try to obtain this loan. Otherwise, he will have to pay the sales price agreed in the contract to the seller.
What if we don’t mention the condition precedent for obtaining a loan?
According to the mortgage broker Cafpi, “if the buyer does not need credit to buy his property, he will have to write a clause by hand. And if he finally resorted to a loan, he could not invoke the benefit of this clause in case of refusal of the bank and to disengage from paying the penalties. “So you have to think twice …