Land purchase... it's getting serious

Hello everyone,

next week we are supposed to go to the notary to sign the purchase contract for our plot of land. Has anyone of you done this without having a written financing confirmation from the bank beforehand? We have been to 2 banks and 2 brokers so far, and all have confirmed to us that they would finance us. Would you sign the contract beforehand?

There is still a small building on the plot which was previously used as a flower shop (registered on the cadastral map). It has neither electricity nor water connection in the building. It has already been cleared of the "old" glass wool and still consists of a roof (concrete tiles), roof frame, and masonry. On the remaining plot, there used to be a large greenhouse. However, this is no longer registered on the cadastral map. One can only see that where it stood there is a slight depth difference visible compared to the rest of the plot. The small building is to be demolished together and I will cover the container costs. Do you think one should apply for a soil survey before the purchase? There are normal single-family houses all around, so I would assume the soil is buildable, right?

To answer your first question: If I had the purchase price in the petty cash, then yes, otherwise no.

If, contrary to expectations, no one is interested in the financing, it goes straight into insolvency. Not quite so exciting.

One does not conclude contracts whose fulfillment is not ensured. This naturally also applies to purchase contracts for real estate. No binding financing confirmation = no conclusion of purchase contract. Furthermore, this could possibly lead to a "fraudulent intent to perform" and this might possibly mean that even with discharge of residual debt in insolvency, things go wrong. A little fear never hurts. :D

Voki, you are mean, but in the worst case, you are right.

Or include financing contingency in the purchase contract. I would not accept that as a seller ...

We did it that way - financing was only secured when the building permit was already a few weeks old and the shell construction tender had been issued :D

A bit of risk has to be there ;)