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signed and need out
I've signed the first paper to buy an apart. but want out. ticked the clause suspensive box on that paper wt the request of the bank loan.
unfortunately the bank did not approve my loan. so can I get out of this buying deal without paying any 10 percent?? there was nothing on that paper that said i'd have to pay if I backed out.
Hi Nina,
we don't know the complete content of the offer you signed ...and apparently you neither !!!
A clause suspensive means, that your offer would no longer valid if the condition (e.g. approval of bank loan) is not given.
Years ago, We faxed / emailed the given confirmation by the bank's no to the vendor and apologized for the inconvenience. end - but that's my story.
What's yours ? Please act ASAP, time is running! Ask a notaire with the document you signed on hand. Good luck!
Speak to your notaire. (The one who advised you when you were drawing up your compromis de vente).
You have to urgently check what the paper you signed actually says regarding the clause on the loan. Does it say that the offer is not valid if you do not get a mortgage with certain terms, or does it says that the offer is not valid if you do not get ANY mortgage? If the latter, you have to prove that you are unable to get a mortgage on any terms and at any interest rate. In the worst-case scenario the buyer will intervene and organize a mortgage for you with an interest rate of 8 %, for example, and you either accept or you have to pay the standard penalty of 10 % of the price.
From your other question, in which you are looking for a notaire only at this stage, I assume that you signed this offer without actually running it past any notaire. This is an extremely bad idea.
Take the rejection letter from the bank. If they accept it, you're clear.
If they don't, then THEY can find a mortgage for you (depends on how the contract is written). If they can do that, then you're stuffed and will lose 10%.
Apart from the advice of other posters, you ought to be aware that signing any type of contract in Belgium is a serious matter and implies a legal obligation. Time to bone up a bit on the Belgian way of doing things?
Sometimes agents will have a paper ready for you to make an offer - bad idea to use these as they don't contain any get out clauses
Nina this is one for a notaire if you didn't get the Loan approval you may be able to walk away but here bidding is much more binding than say the UK where you or the vendor can walk at any time during the process until the final exchange. Next time find out what you're signing first good luck
when i buy an apartment i always insist on a clause "subject to the approval of a mortgage with a bank of MY CHOICE", if you forgot these last two words you might need to take actions quickly as the seller could impose another mortgage with expensive terms.
As has been said, talk to your Notaire asap, and take the bank refusal with you.
I was in this situation, and naturally (he'd lost a sale) the estate agent was livid and put on a lot of pressure for me to find alternative funding - and had a courtier to propose himself.
I made the (moral) argument that if a mainstream bank doesn't think the numbers add up, then there is no way that I will go borrow elsewhere just because it's possible, and that I refuse to be pressured into it. The mention of being 'pressured' into it seemed to do the trick, so I suspect there is a point of law there behind it.
Good luck.
