Broker commission with financing contingency

  • Erstellt am 2019-05-16 09:48:23

Gausek

2019-05-16 09:48:23
  • #1
Good day! We have now bought a house in Hamburg subject to financing contingency. The purchase contract with the seller was signed at the notary, and as a precaution, a financing contingency was included in the contract since we did not yet have a definitive loan commitment. What happens if we do not get the loan after all? We cannot be liable to the seller for damages if the financing does not work out. But do we still have to pay the broker in full? He has done his job and is not to blame that we do not get the loan. Anyone have any idea? Thanks
 

Lumpi_LE

2019-05-16 09:51:36
  • #2
Why does one sign a purchase contract without loan approval? You get that much faster than a notary appointment...
 

nordanney

2019-05-16 09:53:48
  • #3
That depends – that's what lawyers always say.

What is agreed upon in the purchase contract? Suspensive or resolutive condition? How is the commission agreed upon?
 

Gausek

2019-05-16 10:15:25
  • #4
The purchase agreement states "The buyer is entitled to withdraw if he does not receive financing approval."

Regarding the broker's commission, the purchase agreement only states that the contract was concluded with the involvement of the brokerage firm XYZ and that the 6% are to be paid.

Is this in any way enlightening?
 

Gausek

2019-05-16 10:16:32
  • #5
Oh yes, if the world were always as simple as people always imagine it to be. That would be nice.
 

HilfeHilfe

2019-05-16 10:16:42
  • #6
Hm, do you have doubts that it won't work?
 

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