Whether you are a real estate investor, or you decide to buy a home or land, the law requires them to sign a document called a private or more familiarly under rein.
Unlike the deed to finalize the sale, a private does not require the intervention of a notary. You can sign as a private in the presence of a real estate agent or lawyer for example. This contract is regarded as a promise of sale. Called promise reciprocal promise of sale, signed the contract must include a deadline to sign the deed. It is customary that the buyer pays a deposit to the seller an order of 10% of the total. This sum will obviously be deducted from the final price. But to preserve both the future buyer and seller of the property, a private must be accompanied by guarantees called suspense clauses. These clauses are precedent because they do not depend on the willingness of either the buyer or the seller.
They are mainly related to obtaining the loan to buy the property. Indeed, in most cases, the buyer asks a real estate credit to his bank or financial institution. If the loan is not granted, the sale will not take place, the deposit will be refunded or not charged and the real estate agent, if any, Please note that registration at the conservatory mortgages of real estate is considered a suspension clause, as well as the right of first refusal by the mayor of the municipality where the property.
The seller is responsible for delivering goods in good condition. The suspense clauses are mainly linked to possible work on, for example the treatment of termites, detection of lead or asbestos in housing. You should know that the seller must take the work at its own expense or decrease the price of the value of this work. In all cases, be aware that any trades on condition that a private well prepared and precise. Example: You are a buyer and you signed a sub private including a deadline. If the deadline has passed, you are entitled to recover your deposit and cancel the sale. But why not in this case require the seller to lower its price and conclude still the case?
To remember on a private:
- No compulsory presence of a notary.
- It must be very well detailed with a deadline.
- The suspense clauses are mandatory and preserve the interests of everyone.
- A period of seven days is given to the parties.