What to do if the financing falls through and the notary appointment is canceled?

Everything is going well with the sale of your property. Your estate agent has found a sympathetic buyer who is even taking over the old fitted kitchen. The appointment with the notary that your estate agent suggested was also arranged quickly and without complications. But then the buyer cancels because his financing falls through. What to do?

It is not uncommon for this to happen at the moment. Interest rates are threatening to rise to counteract inflation and banks are already planning for this in their lending policies. This is not exactly making the search for a property any easier for those looking for a home, and real estate transactions that seemed to be in the bag are ultimately falling through because of the financing. What can sellers do to avoid this?

And again from the beginning

Once the right buyer has been found and a notary appointment has been made, many people assume that nothing can go wrong now. Marketing is stopped and other interested parties are turned down. If everything falls through, it starts all over again and the property has to be marketed again. Is it possible to save the time, money and work involved?

Check your credit rating - or have it checked

Before deciding on a buyer, check whether they can afford the property at all. For example, you can obtain information from a credit agency such as Schufa. But you usually have to be a member for this, with relatively high fees. According to § 29 para. 2 of the Federal Data Protection Act (BDSG), a "legitimate interest" is also required. Proving this requires formulation skills that laypersons may find difficult.

You can also ask the interested party for a self-disclosure, which they can also request from Schufa. It is important that the information is up-to-date and contains personal data and score values that enable a risk assessment. You can also request a financing commitment from the bank.

Don't say no to other interested parties too early

In view of possible financing rejections, you should only reliably reject other interested parties once the purchase contract has been concluded. Stay in contact with them. As this involves quite a lot of effort, you should work with an estate agent. Interested parties will also feel that they are in good hands because they can also show them other properties if they are ultimately not suitable. An estate agent will also check the creditworthiness of prospective buyers for you. This saves you time and, above all, protects you from unpleasant surprises. Last but not least, it reduces the risk of the notary appointment being canceled.

Do you want to be sure that your prospective buyer can really afford your property? Get in touch with us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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