Month: February 2019

The Withdrawal Period of a Sales Agreement

by Richard Womack

A withdrawal period of 10 days to protect the purchaser against himself

The deadline for retracting a sales agreement is governed by the SRU (Solidarity and Urban Renewal) law. In effect since June 1, 2001, it allowed the buyer of real estate to cancel the contract within seven days of signing it.

This period is now 10 days since the MACRON Act of August 7, 2015 .

During this retraction period the buyer can therefore withdraw from the sales agreement without having to justify his decision to the seller.

The objective of the SRU Law is to protect purchasers who do not prepare their project against an impulse purchase they would regret and allow those who have not engaged in real reflection before signing to break the lead -contract.

This is the case for many tenants who buy from the first visit.

It is advisable to take your time and make several visits of the property at several times of the day to not regret his decision.

On the other hand, it is necessary to evaluate perfectly its budget and the whole of the future loads like the property tax, the heating or the expenses of displacement.

Finally, it is preferable to give oneself a sufficient period of reflection rather than having to assert his right of retraction once signed the sales agreement.

The sales agreement: a conditional contract

The sales agreement: a conditional contract

The ten-day period begins to run from the day after the receipt of the pre-contract. This must be sent by registered letter with acknowledgment of receipt. In the case of hand-deliveries, the period begins to run from the day of signing.

 

During the withdrawal period of the sales agreement, no deposit must be paid unless the signature takes place at a professional who has a financial guarantee. This is the case of a real estate agent or a notary.

In case of cancellation , the deposit paid must be returned within a maximum period of 21 days. Note that this measure was in force for the purchase of a new property on plan (apartment off-plan or construction of a house).

Apart from the right of retraction , the validation of the sales agreement remains suspended on the completion of the suspensive clauses such as the loan provisioning clause. In case of refusal of financing by one or more credit organizations, the compromise is considered to have lapsed.

Borrow Without Personal Contribution to Become Owner

by Richard Womack

 

Be aware that since the beginning of the financial crisis, credit agencies have significantly hardened their position and restricted access to credit . It has become much more difficult today to borrow without any contribution than in the past.

 

Indulgence with young workers

Indulgence with young workers

But each borrower is not housed at the same sign and everyone does not get the same result. For example, if you enter the workforce, it makes sense that you have not yet put money aside. The bank will be more lenient towards you.

On the other hand, if you have been working for 20 years and you are buying for the first time, she will consider that you have had plenty of time to build capital and that if you have no input, it is because you are not very sparing. She may then doubt your ability to manage a budget .

Financing up to 110%

 

The principle of calculating the contribution, however, deserves clarification. If you only have the funds to finance the notary fees, be aware that many banks will not consider your participation as being really contribution. You only finance the ancillary costs and not the acquisition itself.

But this will be a plus in your file.

Calculation of loans subsidized by the State in the personal contribution

Calculation of loans subsidized by the State in the personal contribution

It is not necessarily necessary to bring your personal funds to make a contribution.

In fact, some assisted loans such as the zero-plus loan or the employer loan are included, for some banks, in the calculation of the personal contribution.

Important: the PTZ can not be used to finance notary fees.

 

The contribution of a credit broker

If you think there are gaps in your file and you may have trouble borrowing without a contribution, you may want to use a mortgage broker.

Play the competition and favor free national brokers. These sometimes have a commercial strength that allows you to benefit from sometimes very interesting rate conditions and in many cases you escape the fees.