Selling Quiery

[Belle]

We have just accepted an offer on our house, we sign the compromise du vent next week, our buyer is getting a bridgeing loan, he has a document from the bank ( can't remember the name of it) to say that initially, that have agreed to it, however, it still has to be officially agreed to, this is being written into the compromise, he is allowed 45 days, we are ok with this, it's a case of having to be, but we do have a small quiery, when does the 45 days actually start from, and if he is refused, does he have to show proof of this, to either the agent, or us.Also, how do we stand in relation to the signing of the acte du vent, we want to be gone as soon as possible, but we have a very strange feeling that he is in no rush.

[Judie]

The 45 days should start from the date he signs the compromis, but it's quite usual that it doesn't start until both parties have signed. Unfortunately the 45 days can stretch out if the buyer puts a good case and of course you are a way down the line and may not want to start all over again.

Go with your gut instinct is what I say and if he prevaricates, then come down hard on him and threaten to put it back on the market after the time is up.

[Belle]

Thankyou for that Judie, may I ask something else, is it 45 working days, or just straight 45 days, also when we agreed the offer, the agent asked us to sign that we had agreed, will this be leagally binding, the agent said it was, we are thinking, did the agent tell us this so we wouldn't change our mind, the offer was quite a low one you see, and obviously, he could see his commision looming.

[Judie]

Working days have nothing to do with it. It's just an actual number of days indicated which may be 45 on one compromis or 60 as on ours. Did you have a translator with you to explain the consequences, or will you?

Nothing is legally binding until the compromis has been signed by both parties and the 7 days cooling off period has expired. I'm not sure what you actually signed but it sounds as though the agent was just trying to scare you in to accepting.

The problem for you is that you could be tied in for a couple of months before he fails to get his mortgage, by which time you may have missed a substantial part of the buying market.

However, an offer is an offer and in these difficult times, you may have done the right thing. Only time will tell.

[Belle]

thankyou again, Judie, did you know about the 60 days before you signed, I mean was it something that you both agreed on, what we signed was the offer written out, when I asked the agent if we could still have other viewings from our other agents, he said, only viewings, we can't consider other offers now, the agent said that it will be written into the compromise, that he only has 45 days, what is worrying us is, how can we insist on a completion date, our french agent, has an English agent that works with him, so she will be at all meetings.What can we do after he has got his loan, but still is in no rush to complete, does the bank give a time limit, before it withdraws it's offer.

[Judie]

Belle, I'm an estate agent and I prepare compromis. On that compromis, a date will be entered for completion which is a "best before " date if you understand, but it's not set in stone. I just completed on a sale yesterday which should have happened by the end of January, but the buyer dragged his heels and delayed things, involving a UK solicitor, which delayed things even more. Had he listened to me and trusted me, I'd have handled everything for him at no extra cost, but he's a lawyer and I think he thinks he knows best.

Do be sure that the buyer either signs the compromis at the same time as you, or preferably before you. Once you have signed, you are committed if he wants to proceed. He is the only one with a cooling off period.

Once he has his offer in writing, he has an 11 day cooling off period and then completion can take place if the Notaire is ready.

It's down to the estate agent and the Notaire to deal with the sale as speedily as possible. They'll want their money, after all.

[P-D de Rouffignac]

I am amazed that many vendors and/or their agents appear to be so casual when accepting an offer that is subject to the would-be purchaser securing his finances. In this case, the vendor apparently does not even know which bank has offered finance to the buyer - sometimes known as "a letter of comfort" - and any competent estate agent would require this as a minimum before advising a vendor to accept an offer subject to the sort of delays associated with this kind of arrangement. During which time, of course, the property is withdrawn from the market and cannot be offered for sale.

It is true that theoretically the buyer is required to demonstrate "due diligence" in securing his loan but unless a (substantial) deposit has been paid and is held by the agency or the Notaire - and could be subject to forfeiture - many buyers, of all kinds, have a tendency to drag their feet, as witnessed by other posts on this and other forums on the subject.

Meanwhile vendors have their own worries and concerns, possibly caught in a bridging loan situation, separation, divorce or urgent move, or anxious to put an offer on another property.

I regularly advise buyers/sellers in these situations and urge all parties to have a little consideration for the other side, as well as observing the letter of the law when it comes to timescales and deadlines.

P-D de R.

[mint]

I think too that with a bridging loan, the buyer would want the period of the loan to be as short as possible.  These loans, at least UK - based ones, are charged on a monthly basis and they are meant to be short-term arrangements.

Therefore, if the borrower, for example, expects to have money to complete the purchase in the near future, he takes out a briding loan but he will be very anxious to keep the period of the loan to the shortest possible time as these loans are expensive and the cost of them over a long term would be prohibitive.

So, the buyer has an interest in dragging his feet before the loan comes into effect so as to keep the borrowing period to a minimum

[Belle]

Thankyou all for your replys, just as a footnote to P-D, our agent is holding a deposit, also a letter from the buyers bank, offering the loan, subject, to whatever the bank requires, before making their final offer.