What happens to the sale when the mortgage is refused?
Verified 07 July 2023 - Legal and Administrative Information Directorate (Prime Minister)
When the buyer does not get a mortgage, the sale does not take place. But the financial consequences are different depending on whether the booking contract or the sales compromise (promise of sale) indicated that the purchase was to be financed or not by one or more loans for house purchase. We'll explain.
Compromise to buy with a loan
The sales compromise or booking contract indicates that the purchase will be financed by a loan and what is the period of time allowed the buyer to obtain it. This indication constitutes a suspensive condition.
FYI
The period granted to the buyer must not be less than 1 month. But a longer delay is possible.
When the loan is refused, the sale does not take place and the buyer does not have to pay the seller anything. If the buyer has already paid the seller, the seller must refund the money, without deduction or compensation.
Compromise to buy without a loan
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With a full handwritten entry
The sales compromise or booking contract indicates that the purchase will be financed without the help of a loan.
The buyer wrote with his hand (handwritten entry) that he is informed that if he applies for a loan and subsequently renounces the purchase, he will have to pay a fee.
The amount of these fees is indicated in the sales compromise or the booking contract.
When the loan is refusedHowever, the buyer who renounces the sale must pay a fee to the seller.
With an incomplete handwritten entry
The sales compromise or booking contract indicates that the purchase of the property will be financed without the help of a loan, but the written passage from the buyer's hand (handwritten entry) does not indicate that if the buyer applies for a loan and subsequently forgoes the purchase, then the buyer will have to pay a fee.
When the loan is refused, the buyer may forgo the sale without having to pay the seller.
Without handwritten mention
The sales compromise or booking contract indicates that the purchase of the property will be financed without the help of a loanbut it does not include no written passage by the buyer (handwritten entry).
When the loan is refused, the buyer may forgo the sale without having to pay the seller.