A contract of sale of land entered into in expectation of some loan should be made conditional upon your client (purchaser/borrower) obtaining the loan. The contract should also provide that in the event that the loan is not obtained, the vendor shall return the deposit paid by the purchaser; this is what is referred to as contract subject to a mortgage as stated by Law Repository.
 |
| Photo - backyardwealth.wordpress.com |
CONDITIONS FOR THE VALIDITY OF THE SUBJECT TO MORTGAGE CLAUSE IN A CONTRACT OF SALE OF LAND
1.It must state the source and amount of the loan.
2.The terms of payment; and
3.The interest paid on the loan.
Here is a model subject to mortgage clause in a contract of sale of land:
“This contract of sale is conditional on the purchaser obtaining a mortgage loan from BETTER BANK LTD in the sum of N5,000,000 (five million naira) with interest payable at the rate of 12% PROVIDED THAT where the loan is not obtained on completion, this contract of sale shall be void and the purchaser shall be entitled to the return of the deposit paid."
Send your Adverts/Listing/Press Release/Articles to emmanadebayo@gmail.com
REVIEWS and CAVEAT :
We hope you have found this information helpful. Please note that this information is provided for general informational purposes only and is not intended to be legal advice. No lawyer-client relationship is formed nor should any such relationship be implied. Any post, article, or comment or opinion expressed is not intended to substitute for the advice of a qualified lawyer, but that of the individual who made the contribution. If you require legal advice, please consult with a qualified lawyer. If you need assistance in contacting a lawyer, you may contact us via email emmanadebayo@gmail.com and we would be glad to match you with a lawyer who meets your requirements.
No comments:
Post a Comment
P.S. If you find the post helpful, COMMENT, SHARE & SUBSCRIBE to our newsletters
SUBSCRIBE HERE: http://0bc.xyz/Ys
JOIN US HERE: http://0bc.xyz/Yr
Thanks !