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Compromis de vente
My son signed a compromis de vente for an apartment four months ago. Being very stably employed for many years and with a good income, and having had a satisfactory investigation the finances of purchasing an apartment with his bank a couple of years ago, he waived the right to back out if the loan was not approved by the bank.
The bank has not sent him a decision. The broker was telling him to expect it in November, and in November that it should be in December. Now he received a letter from the lawyer telling him he has 15 days to fulfill his commitment or the contract will be nullified and he has to pay the compensation.
He's chasing out the situation. Here I'd like to ask for suggestions of what he should cover related to dealing with the broker, contacting the bank directly, getting a lawyer, or whatever.
Your son should speak with his notaire first, and then his bank.
He should also remember this situation as a learning experience and never be so stupid again to waive his rights.
I presume that your son waived his rights to a conditional compromis on the basis that he would have lost the purchase otherwise, so ANON is perhaps being a little harsh although the situation will undoubtedly provide a useful learning experience.
Otherwise ANON is right, he has to speak to his notaire (who might just be able to point to a source of funds, albeit at a rather higher cost than your son anticipated, but with a 10% penalty and no apartment to show for it hanging over his head that might provide a possible best way out), and then to his own bank who will be familiar with his finances and might be able to provide a fast loan although he has left it very late. This, frankly, has shown up the risks of using a broker, presumably to find the "cheapest" rate instead of finding the necessary finance himself. I suspect that your son will find that, whatever contract he has with the broker, the broker is well protected from having to provide compensation for his apparent failings.
One other possibility, and his notaire will undoubtedly advise, is that the acte can be postponed (briefly) until your son can secure funds, and in that case your son will have to pay interest on the sum agreed in the compromis. It would be for the seller (with advice from his/her notaire) to decide whether this would be possible, but if the delay were to be brief it could be preferable to restarting the whole sale process even with 10% compensation to come.
