Signed between the seller and the buyer of the property, the sales agreement contains a binding suspensive clause , relating to the obtaining of the real estate loan necessary for the purchase. A clause relieving the buyer of his commitment to the seller, in case of refusal of credit. In other words, the financial institution draws up a loan offer, respecting the wording imposed by law . In concrete terms, this translates into the dissemination of certain information, the presence of mandatory legal information and supporting documents to be included in the file.
What laws govern the implementation of a mortgage?
Real estate loans to individuals are subject to the “Scrivener” and “Scrivener 2” laws dating from 1978 and 1979, respectively.
Although they are still in force, these provisions have been regularly amended, whether by the Lagarde law in 2010, by the Hamon law in 2014 and by the application in French law of European legislation on “consumer credit agreements”. , relating to immovable property for residential use “. Not to mention the code of consumption, which protects the consumer in terms of credit.
What does a loan offer contain?
If a bank can freely edit provisional documents or financing estimates, its loan offer must present the following information, in accordance with Article L313-25 of the French Consumer Code :
- The identity of parties and sureties (names and addresses and company name)
- Credit information (nature, purpose, duration, rate, date of availability of funds …). For fixed rate loans, the schedule of depreciation. For variable rate loans, a note on the terms and conditions of variation of the interest rate, an indicative simulation of the impact of a variation on the monthly payments, the duration and the total cost of credit.
- The amount of the credit, its total cost and its APR
- The insurance and guarantees required, which condition the conclusion of the credit
- The mention of the possibility of opting for a delegation of insurance
Since 1 October 2016, the bank or financial institution must also have a European Standardized Sheet (UNICEF), to facilitate the comparison of loan offers made by different organizations approached. In fact, it follows a formalized model with 15 points to fill in (characteristics of the loan, prepayment conditions …)
What is its validity period?
Conducted by the bank or financial institution, the loan offer is an official document, valid for 30 calendar days, from the date of receipt of the financing proposal by the borrower.
Note that it can only be accepted after a reflection period of 10 calendar days . After this mandatory period, it remains only to return signed by letter, to accept it officially.
At this stage, the loan offer can no longer be changed by the bank.
How is the loan offer put in place?
After this signature, the borrower has a period of 4 months to buy his property. If the signature of the sales agreement can not be made before this deadline, the loan offer may be extended at the request of the borrower, but the bank may refuse.
If the sale is canceled, the accepted loan related to this project must also be resolved. Concretely, this results in the return of the bill sent by the bank with the loan offer, by registered letter with acknowledgment of receipt.
If the sale is sealed the bank will send directly to the notary the bank check that corresponds to the loan amount if your real estate purchase is an existing property.
For a property under construction the amounts follow the progress of the work.