Real estate loan: the bank may require full repayment

Justice convicted a home loan borrower who knowingly fooled his bank. The request for a single refund of the sum, requested by the professional, was confirmed by the court.

The cancellation of the contract between the lender and the borrower provided by a clause

The cancellation of the contract between the lender and the borrower provided by a clause

When contracting a home loan, borrowers must be aware of the responsibilities that the contract entails. Especially since the amounts at stake are particularly high according to the acquisition projects of everyone. And recently, the court has made a decision to say the least unfavorable to the owners having the idea of ​​unfrozen their bank. This text validated the bank’s request for full repayment of the debt after the contraction of a loan.

Indeed, a clause inserted in the credit, states that the discovery of false indications entitles the creditor to claim the entirety of the loaned amount. An abusive condition in the eyes of the borrower. Yet, the court explains that a borrower must show white paw when mounting a home loan. This means that the body in charge of studying the credit must have all the information concerning the applicant. And the latter has the obligation to provide correct data and not falsified. This is why the Court decided to reject the borrower’s claims following the dispute with the bank’s professional.

Do not lie on his borrower profile

Do not lie on his borrower profile

The disclosure of false information may therefore lead to the nullity of the contract. But what natures are the information that has the power to make credit null and void? According to the Court, the income revealed by the plaintiff must be accurate, but any other characteristic that is important in the decision to grant the loan is crucial. In this case, the borrower had falsified his payslips to obtain a positive opinion for the loan.

In his defense, he pointed out the lack of expertise of the banking institution vis-à-vis his file. But this parry was rejected by the judges who consider that the dissimulation and the falsification constitute a sufficient vice to activate the clause of the bank. In doing so, it is therefore entitled to demand the full refund of the sum granted immediately. Borrowers must therefore be vigilant in transmitting real information at the risk of being sanctioned with serious consequences. In a new case, the judges could take into account this case-law process.