You have found the house of your dreams and you are going to sign the sales agreement. Are you worried about funding?
Rest assured, the suspensive condition linked to obtaining a mortgage allows you to sign the sales agreement. Its advantage: having the time to obtain a mortgage on the best conditions.
What the suspensive condition allows and when it occurs
When looking for real estate, you have previously consulted your bank to define your budget. Rarely having capital to finance the whole property, the most common financing is the mortgage.
When signing the sales agreement, a suspensive clause is indicated. It offers the possibility for people wanting to buy real estate to give up the promise to sell if the loan is not granted. The sale will be validated only if the loan is accepted. The suspensive condition is therefore lifted.
For the condition precedent to be valid, the promise to sell must clearly stipulate that the purchase of the property will be made through a mortgage. In case of forgetting, the borrower can reactivate this option of contract by presenting the proof that a loan was requested before the time limit which is on average 45 days
This contract clause is protective for the buyer because he can, from the signing, conclude with the seller conditions of purchase.
In the event of acceptance of the credit, this clause does not allow the future purchaser to retract, if the latter no longer wishes to honor the sale, he will have to pay a part (generally 10% of the amount of the goods) or see the full price. agreed.
Please note: other conditions precedent exist. For example, if you mention that the purchase will be made on the sole condition of the sale of your current property before and that you do not succeed, again, the promise to sell will be null.
How to optimize your time?
When signing the sales agreement, no more time to lose. Between the promise to sell, the periods of withdrawal, the pre-emption right of the town hall, it is better to be organized.
The course of the sales agreement is:
- At the end of the signing of the compromise, you have 7 days to renounce it without penalty upon receipt of the compromise by a registered letter.
- A payment of 10% of the sale price (not compulsory) is made to the order of the notary in charge of the file. Generally, this transaction requires an appointment.
- You must provide proof of deposit to vote your file with a bank or broker within the period indicated in the compromise (between 30 and 60 days)
- To validate the condition precedent: the notary may require two bank refusals to avoid what is called “refusal complacency”. This refusal of convenience consists of obtaining in all conscience the non-acceptance of the credit only to retract on its purchase.
This entire period takes 3 to 4 months between the signing of the compromise and that of the final act of sale.
If you want to negotiate your credit in the best conditions, optimizing your time will be a priority.
To put the odds on your side, contact a mortgage broker. He will quickly process your file while finding the best conditions by comparing, for you, the proposals of the banks adapted to your project.