Resolutive conditions

Resolutive conditions

On Bonaire, if you come to an agreement after negotiating a home, there is already a binding agreement. It is then no longer possible as a buyer to add afterwards all kinds of resolutive conditions. So think about this carefully before you make an offer on a property. Because at the moment you make an offer, there may still be things that are uncertain. Can you manage the financing? Or do you not yet have an overview of the technical condition of the house? If such a thing applies, agree resolutive conditions.

What exactly are resolutive conditions?

Resolutive conditions are conditions that the buyer and seller have included in the purchase deed and that can dissolve the purchase. If a condition is not met within the agreed term, the purchase can be cancelled. You often see conditions set by the buying party, but the seller can also set these conditions.

What are the most common resolutive conditions?

• Reservation of financing

You include this reservation if it is not yet certain that you will be able to finance the house. If the financing is refused within the time agreed in the resolutive condition, you can still cancel the purchase.

Often a term of 50 or 60 days is used to get the financing done. That seems long, but there are sometimes delaying factors that play a role, such as waiting time for a (mandatory) valuation report or an appointment at the bank.

• Subject to technical inspection

With a technical inspection, sometimes also called purchase inspection, an independent specialist will assess the technical condition of the home. This specialist looks at the structural condition of the home, but also at the costs of repairing structural defects. An agreement usually includes a maximum amount for repair of necessary work. For example, that all necessary work should not exceed $10,000. If the costs appear to be higher, the purchase agreement may be dissolved. The costs of such an inspection shall be borne by the buyer.

• Reservation of sale of own home

If you have an owner-occupied home that must be sold before you can buy another home, this reservation is made. If it is not possible to sell your home before a certain date, the buyer or seller can dissolve the purchase agreement. It is not always self-evident that a seller agrees to such a reservation.

• Permission to sell a house on leasehold land

Most resolutive conditions come from the buyer, but the seller can also set this. A commonly used condition on the part of the seller is permission to sell a house on leasehold land. The Public Entity Bonaire must give permission for the sale of a house built on leasehold land. If this permission is not given, the agreement can be dissolved.

Your broker of Harbourtown Real Estate can advise you about these resolutive conditions.