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Clauses suspensives


Tancrède
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I feel a Compromis de Vente coming on.

Can such things as the Exchange Rate ( £ > € ), and the whereabouts of the London Stock Exchange (say, the FTSE 100) be the subject of Clauses Suspensives ?

I would be very grateful for any observations, as I haven't bought a house since the last millennium, and am a bit out of practice.  ( And in those more relaxed days never actually had a C. de V.

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[quote user="Gengulphus"]I feel a Compromis de Vente coming on.

Can such things as the Exchange Rate ( £ > € ), and the whereabouts of the London Stock Exchange (say, the FTSE 100) be the subject of Clauses Suspensives ?

I would be very grateful for any observations, as I haven't bought a house since the last millennium, and am a bit out of practice.  ( And in those more relaxed days never actually had a C. de V. )  [/quote]

I think that the answer is "Only if the other party accepts them". If I were the other party, you'd have to come up with a pretty good reason for me to accept them - and even then I'd suggest that if you need certain values, then it's up to you to take appropriate hedges or fixes or options.

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[quote user="Pickles"]I think that the answer is "Only if the other party accepts them". If I were the other party, you'd have to come up with a pretty good reason for me to accept them - and even then I'd suggest that if you need certain values, then it's up to you to take appropriate hedges or fixes or options.[/quote]

Yes, I quite agree.  The other party is very keen to conclude.  And so am I  -  but I don't want to be wiped up by a load of goons who want a war in Syria.  Three weeks ago these thoughts would not have crossed by mind.

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Wow, what a question.  I only expected french buyers and can you imagine the reaction I would have got if I had even mentioned the exchange rate coming into the equation? I'm sure that they would have told me to 'go away' and so they should have. And how can anyone organise a mortgage if the the price is variable??

In fact this makes no good sense at all. ie when we sold our house, it took nearly a week for our money to get into our french bank and then a couple of days to get back to the UK, so it could all go to pot during  that time scale too, and that would not be down to the buyers, it would simply be bad luck.

Agree a price and get paid that price. C'est tout!

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If you are worried and you absolutely love the house, why not forward buy the money?

I hedged my bets a bit with buying our present house:  bought 50% of the funds in advance and took a chance with the other half.

I think Id is right on this issue; you'd be hard pushed to find anyone willing to accept a clause suspensive on the basis of the taux de change.

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[quote user="sweet 17"]why not forward buy the money?[/quote]

Oh, hello SW17,  hope you are well ?

You are perfectly right, of course  -  and I have forward bought, already.  I just don't want Uncle Sam to stick his foot in it until the next installment is safely done. 

[quote user="sweet 17"]if you absolutely love the house…[/quote]

The house is perfectly ravishing;  I am still reeling from my good fortune;  the guest bedroom has a large romanesque column (and capital) sprouting up in it in a rather random and unexpected way.  That was the must-have detail that really tipped me over.  [I will send you a pic when no one is looking.] 

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Wow, I can tell you have fallen in love![:D]

So you have a large column and a capital...with acanthus leaves? 

Now, you will have people BEGGING to come and stay and you will be even more innundated with visiters than formerly!  Still, I expect you will be dying to show them your - not meaning to be too rude but - phallic symbol comes to mind?

Joking apart, I am thrilled and excited for you and "ravishing" does sound utterly "des res" (not in a clichéd way!)

So, when do you move in?

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[quote user="sweet 17"]So you have a large column and a capital...with acanthus leaves? [/quote]

Oh, come on  -  what do you want jam on it…?   No, alas, not a whiff of acanthus and certainly not historiated.  But quite a corking C12th column, nevertheless, with a plain cushion capital.  The base is underground, and one of my projects is not going to be to dig down to uncover it.

[quote user="sweet 17"]Now, you will have people BEGGING to come and stay and you will be

even more inundated with visiters than formerly![/quote] 

Ah, yes, but the guest room does have its own 'front' door  -  so the ones who are remotely self-start and free-flow, and who don't just want to sit around the house all day like a turned out pudding, can just breeze out into the delightful surroundings of an ancient city.

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I'm trying to imagine exactly how the wording for your clause would go ?

"I agree to buy the house but based on a fixed price based on pounds sterling"

or perhaps

"I have £xxx,xxx to spend but if on the day the exchange rate/the FTSE/the US bombing Syria, WHY, means that I need more than that to buy the €xxx,xxx required to pay for the house the deal is off"

I doubt any seller would accept such a clause, nor a notaire even allow it, but if I were selling to you to accept such a clause I would respond by inserting a parallel clause

to the effect that if the £/€ rate moved to your advantage in the interim I would be

the beneficiary of that gain.

Ultimately it's a gamble and sometimes you just have to let your ar5e hang out and hope for the best, as most of us will have done when buying.

If you're really that nervous though then perhaps now is not the time to be buying [;-)]

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