The ransom has become one of the most discussed topics of Internet users. Most of them are project managers. Therefore, it is normal that they ask themselves so many questions. Please note that the buyout sale is not available to everyone. Conditions must be met in order to qualify. And there are steps to follow. Focus!
A brief reminder of the principle of sale and repurchase
Selling back or selling with the right to buy back follows a well-defined principle. This basically consists of parting with one’s property in exchange for a (significant) amount of money. We are talking here about selling your home. Unlike a normal property sale, the seller retains the option to reclaim his property. Of course, there is a fixed period in which he must return the basic sale price. Pursuant to articles 1659 et seq. of the Civil Code, a buyout sale is analogous to a contract under which the seller reserves the right to take back the thing sold, subject to the return of the original price and reimbursement of expenses incurred. The redemption is carried out in stages.
The use of a notary public is mandatory for the conclusion of a sales contract. The signed act of sale and purchase must clearly indicate the option of redemption. Otherwise, it will not be valid. As a rule, the clause is attached to the contract. It specifies various obligations applicable to the seller, such as payment of an accommodation allowance. In addition, the duration of the buyout option is displayed in the buyout sale deed.
Who is eligible for a sale with a buyout option?
A buyout sale remains a profitable solution for some. This is especially true for property owners in France. In the event of financial hardship, a buyback sale allows the seller to raise funds outside of banking networks. In addition, he is not obliged to return the amount received, unlike real estate loans. However, the seller risks losing his property irretrievably if he does not return the original sale price within the allotted time.
If you’re heavily in debt, a buyout sale can save you a lot of adjustments. Indeed, the funds received will be used to pay off overdue payments. Thus, you will get out of the situation of over-indebtedness. This is very useful, especially if you are already registered with the Banque de France. After paying off large debts, your banker can provide you with a new, more attractive loan. Foreclosure sale avoids foreclosure. Since your house has already been sold, your creditors will no longer be able to take possession of it. If this is your main residence, a buyout sale will be of great help to you. Otherwise, you will be forced to pay capital gains on the property. They can change the rules of the game, especially if there is a noticeable difference.
Carrying out an act of redemption of your property: what conditions must be met?
A buyout sale is for heavily indebted owners. This is a great alternative to a buyout or loan consolidation. Unfortunately, bank records do not allow you to access this solution. If this is your case, a buyback sale remains your best option. However, there are a few points to pay attention to. For example, a repurchase agreement obliges you to pay compensation for use before maturity.
You cannot make a redemption act until the accommodation allowance has been paid in full. The same is true in case of non-reimbursement of the basic sale price. In addition, additional costs are often unavoidable. Moreover, they are also your responsibility as the original seller. To get your property back, you must no longer have any debts. Provision of new credit prior to the completion of the buyback sale cancels the buyback act. Please note that the maturity of the redemption option cannot exceed 5 years. It usually fluctuates between 18 and 36 months. This is clearly stated in the buy-sell agreement.