Principle of Suspensive Conditions
These are clauses indicated in the sales agreement that condition the creation of the legal effects of the loan/mortgage credit contract on the fulfillment of one or more conditions specifically stipulated in the notarized deed. The condition in this case is obtaining the bank’s approval. It is primarily a protection for the future buyer in the event that their credit application is refused by the banking institution.
Thus, when you sign your sales agreement, it will be subject to the suspensive condition that you obtain your loan/mortgage credit within the period provided at the time of signing the sales agreement before the notary or with the real estate agency.
Concretely, this means that if you do not obtain your loan/mortgage credit within the agreed period, it becomes void (canceled) unless an extension of the period to obtain your loan/mortgage credit is granted.
In this case, things are returned to their original state, and each party to the sales agreement is released from their obligations. The seller could then agree to sell their property to another prospective buyer who would sign a new notarized sales agreement.
At Crédit Populaire Européen, we are committed to giving you a quick response so that you can promptly inform the seller.