Originally Posted by Marc Big Plan
I wouldn't sign without it. I'm currently looking for houses at the minute and I'm going to insist its included. I have a chronic illness and a lot of insurance companies will refuse mortgage protection to someone with it even if their illness is very minor. I've read a lot about people getting high premiums with it, or no cover at all and having to look for a waiver if the bank will accept one.
If the seller wont accept the clause, I'll walk away. There are other houses.
As it is not a legal requirement that the clause be included, and the risk is on the sellers side if it is added to the contract, I really can’t see the benefit to the seller of agreeing to it. I could see the benefit if properties were plentiful and buyers few, but that is not the case right now.
You should not bid on a house unless you are certain you can finance your bid, be that with cash or borrowings. I’d have to say Marc Big Plan, if you insisted on the clause being inserted, I would be concerned that you cannot complete the sale and given the costs involved on the sellers side if a sale does not complete after contracts are signed, you should suffer a financial loss if you cannot afford the house.
For that reason, if the seller doesn’t like the vibe, they may be more than happy for you to walk before contracts are signed. Another buyer is likely to come along.