When you purchase a property, you can include various resolutive conditions in the purchase contract. These conditions ensure that you run less risk and can therefore still withdraw from the purchase if necessary. One of the best-known conditions is: subject to financing. We are happy to explain what this means.
Subject to funding
The financing clause is a resolutive condition that you can include in the provisional purchase agreement. As the buyer, this clause indicates that if you are unable to secure financing, you may withdraw from the purchase without consequences. It is possible that a buyer may be unable to secure financing by a certain date, for example because the bank rejects the mortgage application.
Purchase without reservation
Subject to financing is one of the most common resolutive conditions. However, it is also possible to make an offer without this condition. In that case, you only run the risk of having to pay a penalty if you are unable to secure the financing by an agreed date and decide to withdraw from the purchase.
Free consultation
When you schedule an introductory meeting with us during your search for a home, you will already know in advance what budget is feasible for you. This will put you in a stronger financial position when you make an offer, as you will already know the maximum you can offer. View the locations from our advisers.