Suspensive condition of loan: can we refuse it?
In the absence of sufficient funds, the vast majority of property purchases are financed through at least one loan. But even if the buyer makes a firm and definitive commitment by signing a promise or a compromise of sale, there is no guarantee that his loan will be accepted, and therefore that he will have the funds necessary for this purchase.
The stakes are therefore high, especially since as an advance, the purchaser is required to pay a capital compensation equivalent to 10% of the purchase price of the property. Fortunately, there is a protective device allowing it to limit the scope of its commitment: the loan suspensive condition.
What is meant by loan suspensive condition?
A loan suspensive condition is a form of the clause, which is to say a special provision supporting the terms of the contract between the two parties (seller and buyer).
To be attached to the promise or the sales agreement, this clause aims to base the purchase/sale of the property on obtaining a loan, the conditions of which respect those defined by the buyer (ceiling rate, in particular ). If this condition does not arrive within the terms fixed, the contract is automatically canceled and each of the parties becomes free again.
Note: what is the delay associated with the loan suspensive clause?
According to the law, the minimum time that must be granted to the buyer to find his mortgage is one month. But as a general rule, so that he has the maximum chance of obtaining a loan on advantageous terms, this period is reduced to three months.
In the event of refusal on the part of the bank or if the loan does not meet the conditions laid down, the buyer does not suffer any penalty. He also automatically retrieves all of the funds paid for the immobilization of the property. On the contrary, if the loan is granted according to these conditions, the signing of the authentic deed of sale to the notary becomes compulsory for both parties.
Promise or compromise of sale: what withdrawal period for the buyer?
The loan suspensive condition offers not only protection to the buyer, but also to the seller: freed from any contractual link, he can again and without delay offer his property for sale.
After signature, the buyer has a period of 10 days to use his right of withdrawal. If he renounces the purchase of the property during this period of time, no penalty can be claimed from him by the seller.
After this period, if the loan suspensive condition is met and he refuses to sign the authentic instrument, he is liable to the payment of damages.