Resolutive conditions (ontbindende voorwaarden): what are they, actually?
Resolutive conditions are clear agreements that still allow you to pull out of buying or selling a house.
Financing condition
You hear more and more often that people in cities like Utrecht, here, but also in Amsterdam, are bidding without a financing condition. That also makes the financing condition one of the most important conditions. With a financing condition, the buyer has time to get the mortgage arranged. At the moment, only 100% of the market value may be financed. In the current market, where many bids are above market value, it's important to state clearly in this financing condition the amount for which a resolutive condition is included. If the purchase agreement includes a financing condition for 100% of the market value, and the difference between the market value and the transaction price is, say, €10,000, then you'll have to pay that yourself. You can't dissolve the agreement in that case. So pay close attention to this and ask an estate agent for advice if necessary. If you can't get the mortgage arranged, you can dissolve the agreement on the basis of the agreed conditions. You do then have to show the other party why the bank rejected your application. If the home costs less than €265,000, you can apply for a mortgage with NHG (Nationale Hypotheek Garantie, the national mortgage guarantee). Consider carefully whether you want to include this as an extra resolutive condition.
Building survey
Since 1 February 2018, a building survey has been a standard resolutive condition. It only isn't part of the purchase agreement if the parties explicitly agree to waive it. For your own duty to investigate, it's important to have a building survey carried out. That way you know whether there are any defects and what maintenance is coming up in the next few years. A building survey is also reassuring for a seller. If things later turn out not to be right, he can't simply be held liable for everything. Sometimes structural defects or serious overdue maintenance come to light during such a survey. That doesn't always mean the purchase is dissolved. In many cases, the parties then agree that an amount is taken off the purchase price, or that the seller repairs the defects before the transfer. That way the purchase goes ahead.
No Risk clause
If you include a No Risk clause in the purchase agreement, you may dissolve the purchase if your own house hasn't been sold by the agreed date. That way you can be sure you won't be stuck with two houses and double costs. Often, as security for the seller, it's added that if another offer is made on the home, the buyer must drop the No Risk clause or the seller may go ahead with another buyer.
Completion date
The completion date isn't a resolutive condition, but it is an important point in the negotiations. You agree on a completion date together. If the parties do mutually want a different date after all, that's possible. However, the completion date can't be changed unilaterally.
The seller's resolutive conditions
Resolutive conditions are usually only for the buyer. However, it's also possible for the seller to include a resolutive condition. If, for example, he isn't yet sure that he'll get financing for the house he has bought, he can include this as a resolutive condition. The seller may then withdraw from the sale if the purchase of his new house falls through.
Would you like advice when making an offer? You can have it! Get in touch with us and together we'll look at the best way to make your offer.
