Onder voorbehoud van financiering

What is Onder Voorbehoud van Financiering?

"Onder voorbehoud van financiering," a term frequently used in the vibrant Dutch real estate market, translates to English as "subject to financing." This phrase denotes a condition within a property's purchase agreement, asserting that the buyer's obligation to proceed with the transaction hinges upon the successful acquisition of suitable financing within a predetermined timeframe.

Why is Onder Voorbehoud van Financiering Important?

The significance of this condition for buyers cannot be overstated, as it empowers them to protect their financial interests before cementing their commitment. By integrating the "onder voorbehoud van financiering" clause, buyers ensure that they are not legally bound to complete the transaction if they are unable to secure the necessary financing, typically in the form of a mortgage loan, on satisfactory terms and conditions.

How is the Duration of the Financing Condition Negotiated?

Negotiating the duration of the financing condition is a customary practice between the buyer and seller, typically spanning a window of two to six weeks. During this period, the buyer is responsible for navigating the complex terrain of financing options, including pursuing lenders, submitting loan applications, and providing the necessary documentation.

What Happens if Financing is Not Secured?

Should the buyer fail to secure financing within the mutually agreed-upon timeframe, the "onder voorbehoud van financiering" condition allows them to withdraw from the agreement without any legal repercussions. However, it is incumbent upon the buyer to strictly adhere to the deadlines and prerequisites outlined in the purchase agreement to effectively exercise this right.