if sign contracts and then pull out do you defo lose deposit?

I

ilovecheese

Registered User
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Hi,

Im sale agreed on a house at the minute and the vendor is pretty eager to get contracts signed. Im in the middle of applying for life assurance, and although ive never suffered from anything life threatening I have had some health problems and am worried about the delay in getting assurance or possibly even getting refused.

If I sign contracts but then the sale doesnt go through not because I dont want the house but because i have been refused life cover and cant drawdown on the mortgage will i lose the deposit?

I dont want the vendor to pull out coz of delays...

Thanks in advance!
 
Ask your solicitor to put ask for a clause in contract stating that it purchase is dependent on issue of life assurance.

Of course the vendor may be unhappy with this, but it shows commitment and goodwill fromn your side.
 
that is the first good news Ive had since i went sale agreed and starting giving myself heart failure (metaphorically speaking!) about what would happen if i couldnt get life cover!!!

didnt want to leave contracts unsigned in case vendor thought we were messing around and pulled out, didnt want to sign them in case couldnt drawdown and lost €40,000 of my hard earned cash!!!
 
It depends on vendor, but funnily enough I've just accepted same conditions from a buyer this week. They (solicitor) were dragging heels, so I issued a time ultimatum and accepted the life-policy terms, which I understand can take time.

Of course though, if the vendor wanted to pull out, they could still smash up the docs office, and get cover refused, but I believe that it's a "bird in bush scenario" for me.
 
Being refused life cover won't prevent you from drawing down your mortgage - you can sign a waiver.
 
Hel_n said:
Being refused life cover won't prevent you from drawing down your mortgage - you can sign a waiver.
Click to expand...

This waiver is dependant on the Mortgage Company agreeing.

They don't have to.

see this thread
 
The acceptance of a waiver IS dependent on the lender but almost all of them will accept it. In fact the only lender I know not to is Start
 
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