L-Bank Z-20 loan rejected due to contract error

Hello everyone,

we plan to build a single-family house, this in a timber frame construction as a KFW 40 variant. We are really satisfied with the construction company and also get along well with the financer. Unfortunately, a mistake occurred in the contract; according to the draft, the contract only comes into effect if the KFW and L-Bank funding are approved (suspensive condition). Both clauses are included in the draft, but in the contract only the one with the KFW remains, the one with the L-Bank was accidentally deleted), neither the construction company, nor us, nor the financer noticed this, so it came to the signing - very unfortunate. It was only noticed by the housing promotion office, our application has now unfortunately been rejected, we would now like to file an objection and hope for goodwill. The house builder will prepare a statement next week and request the resumption of the application. Is anyone familiar with such a case and knows how it turned out?

Hello,

something definitely went wrong, no question. This happens more often than you might think – sometimes exactly the few words that matter in the end disappear between the draft version and the final contract. Unfortunately, there is little leeway with L-Bank as soon as formal requirements are not met. They scrutinize the application very carefully and have a pretty clear stance; what is not contractually regulated simply does not count.

An objection has a chance if you can prove that all parties actually had the same intention from the start and can also document this. The statement from the construction company is important, especially if they can confirm the sequence of events. Sometimes there is at least an individual case review; a lot depends on how open the responsible officer is to explanations.

But to be honest, expect the process to be slow and rarely in favor of the applicants. It has happened that such applications were reopened after supplementary statements, but you cannot rely on it. It is good that you are approaching it in a structured and direct manner.

Schnackischnak