Application receipt agreement: gives you time to rethink
When the buyer wants to reserve a property for buying it till he can arrange for finance to pay in full he must sign an application receipt agreement. This is an agreement that entitles the buyer to make a choice for the buying of the property and keep it frozen for himself till he can arrange for the finances. This fee may be the application processing fees and is non-refundable. Only thing to be happy about it is that if at all you stick to your decision of buying the property finally this amount will be included in the final price of the property.
There are two clauses to this agreement
If the applicant changes his mind and decides not to buy the property then the amount that was submitted will be forfeited and no refunds will be made. It will not be obligatory to make the purchase but if you do not buy the property according to the agreement your deposit will be forfeited.
If at all the application is not accepted or the applicant could not arrange for the finance, the deposit money is refunded. The expenses such as appraisal fees, survey fees and other such expenses will be deducted before returning the deposit.
This agreement is an instrument that gives you the time between selecting the property and arranging finance for the purchase. This time can also be used to think over the decision and does a thorough background check so that you make informed decision.
Application Receipt Agreement-lease option, 10.0 out of 10 based on 2 ratings