What is a suspensive condition of obtaining a mortgage in a promise to sell?

If you plan tobuy a residential, professional and residential property or a building plot, promise to sell must specify the origin of the funds financing the purchase. If you fund all or part of the purchase by one home loan, the promise includes obligatory a suspensive condition for obtaining a loan. This means that you buy the property as long as you get the loan.

Thus, as long as the suspensive condition is in progress, the parties are committed but the final realization of the sale (signature of theauthentic act, transfer of ownership and payment of the price) depends on obtaining the financing.

In practice, the suspensive condition contains the details of the financing project, including:

• Maximum aggregate amount of loan(s) to be obtained
• Duration of reimbursement
• Maximum interest rate accepted by the purchaser (excluding insurance, application and guarantee fees)
• Deadline for the submission of the loan application
• Time to get a loan agreement (usually it is 45 to 60 days after signing the promise and it can not be less than 1 month)
• Number of banks to solicit
• Proof of obtaining or refusing the loan (loan offer, bank mail, supporting documents).

You must strictly abide by the terms of the suspensive condition in your loan search (loan amount, rate, repayment...).)

In the event of a loan agreement, you must notify the notary and the seller. The sale then continues until the signature of therepetitive deed of sale at the notary's.

If you do not obtain the loan, you must inform the seller and the notary according to the conditions and within the time limits provided in the promise of sale. The proof(s) of refusal must also be sent. If the steps are completed on time, the sale does not take place and it is possible to recover, without penalty, the sums paid on signing the promise to sell.