Financieringsvoorbehoud
Financing contingency
A clause in an agreement that grants the buyer the right to terminate the purchase if financing cannot be secured within the stipulated period.
The financing contingency is a conditional provision commonly included in real estate purchase agreements. It allows the buyer to terminate the agreement if they are unable to obtain a mortgage or other financing, provided they notify the other party within the agreed period.
This contingency protects the buyer against the risk of being bound to an agreement they cannot financially perform. It is particularly relevant in residential transactions requiring external financing.
In practice, the period is typically fixed at between three and six weeks. The buyer must demonstrate that they have made sufficient efforts to secure financing.
“The buyer has invoked the financing condition after the bank had rejected the mortgage application.”
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