The "Real Estate Questionnaire Board" is a forum where the president of Rich Road Real Estate Investment Co., Ltd. solves questions and concerns regarding real estate investment.
Look for questions that are similar to yours or that have solved your question in the past.


Question title: Special loan agreement

If I get a loan agreement from a bank in connection with the purchase of a real estate for investment, and the final loan cannot be received from the head office of the bank after concluding the sales contract, will the full payment of the contract be refunded?
There is a loan special provision in the sales contract, but there is no description of the contract cancellation deadline if the loan is not approved. The settlement date and time is also decided, and the bank has received an unapproved contact a few days before.
(The penalty for cancellation due to breach of contract is stated as 10% of the selling price.)
The necessary procedures for financing are implemented without any problems.
The seller incurs costs associated with exterior wall repairs, water supply repairs, and surveys when the property is handed over.
In this case, the above 10% penalty will be incurred, or if the deposit is 100 million yen, it will be fully refundable, or the repair cost will be deducted from the deposit and the buyer will bear the refund request? ? Thanking you in advance.


Regarding the special loan agreement.

I am Hosoda on the Rich Road.
If the contract provisions include the following as a loan special provision, if the necessary procedures for financing are implemented without any problems, the contract is not in breach and the money received by the seller is the full amount of the buyer. Will be returned to.
-------------------------------------------------- ----------------------------------------------
This agreement is concluded by the buyer on the condition that a loan of XNUMX yen will be made to the financial institution, and if the loan financial institution cannot obtain approval for all or part of the above loan, until the year In that case, the buyer can cancel this contract without breaching the contract. In this case, the seller must return all the money received to the buyer and cancel the contract. However, this does not apply if the buyer has delayed the submission of necessary documents such as documents to be submitted to a financial institution or changed his / her place of business after the conclusion of this agreement.
-------------------------------------------------- ----------------------------------------------
The contract terms differ for each sales contract, so if you do not check the contract terms, you will not be able to answer clearly. We can only provide such answers, but please check.

Answer staff: Hosoda