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Adding subject to loan approval clause to contract

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  • 12-11-2018 8:49pm
    #1
    spider77
    Registered Users Posts: 107 ✭✭


    I am currently sale agreed on a property and the bank have approved the loan subject to conditions. I am still waiting for mortgage protection approval as insurance company wrote to my GP for a report and it is taking time to resolve. I still don't know the outcome of that. My solicitor has suggested I sign contracts anyway as its only a few weeks to the agreed closing date but I am worried about losing the deposit and more. He said he can attach the clause to the contract saying subject to loan approval. Is it acceptable to add this as an attachment or should it be added to the actual contract before I sign now? I am a first time buyer and unsure what to do here. My solicitor is doing this a long time and probably knows what he is doing but I just want to make sure I won't run into difficulty if I cannot get mortgage protection or something else goes wrong. I am just wondering what normally happens as I assume this would not be in most contracts prepared by vendors solicitors and would need to get added.


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    #2
    Lycoge
    Registered Users Posts: 59 ✭✭Lycoge


    Our solicitor added it to our contract before signing. Solicitor will attach it as a clause, return to vendors solicitor for agreement of clause and if the vendor's solicitor accepts it, you then sign the contract. Pretty standard and the best way to safeguard your 10% deposit should anything go wrong with the mortgage. I'd be wary of signing without the clause added just in case.


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    #3
    spider77
    Registered Users Posts: 107 ✭✭spider77


    Lycoge wrote: »
    Our solicitor added it to our contract before signing. Solicitor will attach it as a clause, return to vendors solicitor for agreement of clause and if the vendor's solicitor accepts it, you then sign the contract. Pretty standard and the best way to safeguard your 10% deposit should anything go wrong with the mortgage. I'd be wary of signing without the clause added just in case.


    Thanks for the reply. I think he mentioned me signing it now with the clause attached and then send to the vendors solicitor for review and signing. Might suggest so that they accept it first before I sign. Thanks


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    #4
    utmbuilder
    Registered Users Posts: 467 ✭✭utmbuilder


    its vital to have life cover and it trips a lot of people up, they decline for stuff like high blood pressure,
    once u apply to one provider they say you are on a database for all others , which i think is rubbish as the list they use to record such applications on is not in use

    there are many provider who cater for declined people but the not knowing part is the terrible part of it all.

    If two people are on the mortgage the last life line is not to have cover and ask the bank for a wavier although if you are a single applicant with kids that could be an issue,


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    #5
    miezekatze
    Registered Users Posts: 1,341 ✭✭✭miezekatze


    That's a fairly standard clause, our solicitor also added it to our contract at the time. You never know what might happen between signing and drawdown.


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    #6
    annoyedgal
    Registered Users Posts: 769 ✭✭✭annoyedgal


    Our sale almost fell apart as our buyers couldn't get mortgage protection. They had this clause which would have protected their deposit. We would have lost thousands in legal fees and lost the house we were buying.
    So yes put in the clause but in my opinion no don't sign the contract until you get the mortgage protection.
    It can take weeks to resolve if you are refused mortgage protection. Our buyer eventually got a waiver but it was 11th hour stuff and highly stressful.


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    #7
    Mark1916
    Registered Users Posts: 523 ✭✭✭Mark1916


    spider77 wrote: »
    I am currently sale agreed on a property and the bank have approved the loan subject to conditions. I am still waiting for mortgage protection approval as insurance company wrote to my GP for a report and it is taking time to resolve. I still don't know the outcome of that. My solicitor has suggested I sign contracts anyway as its only a few weeks to the agreed closing date but I am worried about losing the deposit and more. He said he can attach the clause to the contract saying subject to loan approval. Is it acceptable to add this as an attachment or should it be added to the actual contract before I sign now? I am a first time buyer and unsure what to do here. My solicitor is doing this a long time and probably knows what he is doing but I just want to make sure I won't run into difficulty if I cannot get mortgage protection or something else goes wrong. I am just wondering what normally happens as I assume this would not be in most contracts prepared by vendors solicitors and would need to get added.

    The vendors wouldn't agree for the clause to be inserted into the contracts for my purchase as they were purchasing another house. We waited until we'd everything in order (life assurance etc) and then we signed contracts, it's not ideal but unfortunately it happens often when in a chain!


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    #8
    annoyedgal
    Registered Users Posts: 769 ✭✭✭annoyedgal


    They might agree as in order to allow the clause into our buyers contract we also had to have it in the contract of house we were purchasing.
    Thus the reason the chain almost fell apart due to buyers mortgage protection issue.
    It will save a lot of stress to have all your ducks in a row and then sign. Don't think our solicitor would have let us sign without it and he was pretty miffed the other party signed without having their affairs in order.
    Mortgage protection can be tricky and protracted if any medical issue comes up.


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