Property buying "cooling off period"

[stan]

Being in the process of selling my house in France, I am aware of the 7 day cooling off period for any buyer following receipt of the signed Compromis de Vente. In our case the buyer is buying with a small mortgage along with substantial capital. The estate agent has said (and I recall this from my own buying experience) that the bank supplying the mortgage also stipulates a 10 day cooling off period following acceptance of the mortgage.

If the buyer then withdraws from the mortgage offer during this 10 day cooling off period, I take it there is no loss of deposit that was lodged following the 7 day Compromis de Vente cooling off period and that is the end of the matter. I have tried to get this info from the estate agent, but as usual he is a bit cagey and will not give me an answer other than "there will be no problem, I have checked with the bank !)

[Boiling a frog]

My take is this. The buyer signs a compromis as does the seller. This contains a clause suspensive that it is dependent on obtaining a mortgage. The buyer then has a 7 day cooling off period after which they can (but not a legal requiremet) pay a deposit ,10% being normal)

Then the bank offers a mortgage with a 10 day cooling off .

If the buyer decides not to take up the mortgage offer they cannot use that as an excuse not to go ahead with the sale so would probably loose the deposit.

[stan]

[quote user="Boiling a frog"]My take is this. The buyer signs a compromis as does the seller. This contains a clause suspensive that it is dependent on obtaining a mortgage. The buyer then has a 7 day cooling off period after which they can (but not a legal requiremet) pay a deposit ,10% being normal)

Then the bank offers a mortgage with a 10 day cooling off .

If the buyer decides not to take up the mortgage offer they cannot use that as an excuse not to go ahead with the sale so would probably loose the deposit.[/quote]

Thanaks Boiling a Frog, that sounds like the plan !, appreciated.

[Judie]

I'm sory, but I don't agree. The whole point of the mortgage cooling off period is for the buyer to decide if they want to take up the offer. That's why there is usually a 60 day period mentioned in the compromis for those purchasing with a mortgage - enough time to get a favourable offer.

The last sentence mentioned by BAF, IMO, refers to the piece handwritten on a compromis to the effect that the purchaser is buying WITHOUT a loan, and should they have to fall back on a loan and that loan is not forthcoming, then they cannot use that as an excuse not to go ahead with the purchase.

What would be the point of a mortgage cooling off period otherwise?

[Boiling a frog]

The hand written bit does indeed state that a mortgage is not required however if a mortgage is required it is a clause suspensive in the compomis and that was what I was referring to.

The reason for a 10 day cooling off period is a legal requirement in case you have a better offer else where. It is NOT a get out clause from buying the property if you decide not to take up that offer or any other offer.

If you cannot get a mortgage within the time frame laid down in the compromis ,,usually 30 or 60 days, then one needs to prove that you could not get a mortgage, it is not sufficient to state "I did not like the terms so did not take up the offer"

[Judie]

[quote user="Boiling a frog"]

If you cannot get a mortgage within the time frame laid down in the compromis ,,usually 30 or 60 days, then one needs to prove that you could not get a mortgage, it is not sufficient to state "I did not like the terms so did not take up the offer"[/quote]

I agree.

[ProvenceSearch]

Just to confirm that Boiling A Frog's answer is correct. The mortgage offer itself results in the Condition Suspensive being satisfied. The fact that the borrower (buyer) has the right to not accept the mortgage offer is a separate issue and does not affect the Compromis de Vente.