Clause Suspensive as well as the French Mortgage
De BISAWiki
We're almost at the end of 2010 and French Property continues to be a great investment. The French finance prices are at among the lowest levels noticed in France for a lot of years. Property costs are moving upwards, having said that, you will find nonetheless some great bargains with house prices at levels seen three - four years ago in areas including Valbonne, Mougins, Antibes, Nice and Cannes around the French Riviera.
France was even voted the top spot to reside within the planet by International Living Magazine for the 5th year in a row!, and why not! High-quality of life, Culture & Leisure, Health, Infrastructure and of course not forgetting the climate plus the 300 days of sunshine we get on the French Riviera during the year.
If you're thinking about buying a French house and securing a low French Mortgage rate look no further than an independent Mortgage broker on the French Riviera: A Fast, Efficient and Professional NO FEES independent service - an independent broker can offer advice on any bank rate available.
When buying a French house as a non-resident for an investment or to use as a vacation home, you'll find some elements of your mortgage process that you need to be aware of. One particular such element is the Clause Suspensive. This is basically your get out clause for the return of your deposit if anything goes wrong along with the French property purchase does not go ahead. Your independent mortgage broker in France and notaire should explain this fully to you before you enter into any kind of contract.
You will sign the Compromis de Vente (sales agreement), ensuring that it contains the 'Clause Suspensive' stating that the purchase is dependent on you obtaining a Mortgage. If the bank declines the French House Mortgage for any unforeseen reason, then all monies including the deposit will be returned to the buyer in full. There will be a time limit for applying for your Mortgage broker in France stipulated within the 'compromis de vente', normally this is 10 days. This is the time in which you have to submit your Mortgage application to the lending bank via your Independent Mortgage Broker - you then have around another 30 days to have the French Mortgage offer in location.
It is important that the financial details in the operation: the loan amount, the name of the lending bank, the interest rate along with the length with the Mortgage are defined in the compromis de vente to avoid problems later. In many cases we suggest you fax or scan a copy on the compromis de vente to your independent French Mortgage Broker so that they can ensure that the financial details from the purchase are correctly defined to protect your interests.
If you do not intend to obtain a Mortgage in France on your house, you are expected to write in your own handwriting that you intend to give up your rights under this law. This is not always wise, since should you subsequently decide to obtain a Mortgage, and fail, then you will lose your deposit. If, nevertheless, the seller will only consider your offer without you having recourse to a French mortgage calculator, then your mortgage broker in France can advise you on how to proceed by pre-approving your loan application to significantly lessen the risk of losing your deposit.
