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Suspensive condition to get a mortgage
Reservation contracts always include a suspensive condition to get a mortgage to finance the property. what is the deadline to get it? What do we call "to get a mortgage"?
The mecanism is extremely simple: if the purchaser cannot get a mortgage, the reservation contract is cancelled and the deposit is fully refunded without any cost.
The deadline to get the mortgage is legally 1 month minimum. The Consumption Code obliges the seller to indicate in the reservation contract if the purchase will be financed with a mortgage or not. If not the purchase is supposed to be financed with a mortgage. The duration of the period to find the right mortgage is legally 1 month minimum from the date of the reservation contract.
Legally only a agreement in principle is valid even if it is only verbal. So it is very important to indicate :
- the amount of the mortgage the buyer intend to get,
- the maximum interest rate the buyer is ready to accept,
- the duration of the mortgage,
- the name of the banks the buyers will contact.
Bertrand Le Mire | Date Published : 2005-03-25 14:32:29 | Last modification time : 2005-06-16 20:35:40
