The Cluse Suspensive and a French Mortgage

We’re nearly at the end of 2010 and French Property is still a great investment. The French Mortgage rates are at one of the lowest levels seen in France for many years. Property prices are moving upwards, however, there are still some great bargains with property prices at levels seen 3 – 4 years ago in areas such as Valbonne, Mougins, Antibes, Nice and Cannes on the French Riviera.

France was even voted the best place to live in the world by International Living Magazine for the 5th year in a row!, and why not! Quality of life, Culture & Leisure, Health, Infrastructure and of course not forgetting the climate and the 300 days of sunshine we get on the French Riviera during the year.

If you’re thinking about buying a French property and securing a low French Mortgage rate look no further than French Mortgage Xpress – the best independent Mortgage broker on the French Riviera: A Fast, Efficient and Professional NO FEES independent service – just look at our testimonials

When buying a French property as a non-resident for an investment or to use as a vacation home, there are some elements of the mortgage process that you need to be aware of. One such element is the Clause Suspensive. This is basically your get out clause for the return of your deposit if anything goes wrong and the French Mortgage or French property purchase does not go ahead. Your mortgage broker and notaire should explain this fully to you before you enter into any kind of contract.

You will sign the Compromis de Vente (sales agreement), ensuring that it contains the ‘Clause Suspensive' stating that the purchase is dependant on you obtaining a French Mortgage. If the bank declines the French Property Mortgage for any unforeseen reason, then all monies including the deposit will be returned to the buyer in full. There will be a time limit for applying for your French Mortgage stipulated in the ‘compromis de vente', normally this is 10 days. This is the time in which you have to submit your French Mortgage application to the lending bank via your Independent French Mortgage Broker – you then have around another 30 days to have the French Mortgage offer in place.

It is important that the financial details of the operation: the loan amount, the name of the lending bank, the interest rate and the length of the French Mortgage are defined in the compromis de vente to avoid problems later. In many cases we suggest you fax or scan a copy of the compromis de vente to French Mortgage Xpress so that we can ensure that the financial details of the purchase are correctly defined to protect your interests.

If you do not intend to obtain a French Mortgage on your property, you are expected to write in your own handwriting that you intend to give up your rights under this law. This is not always wise, since should you subsequently decide to obtain a French Mortgage, and fail, then you will lose your deposit. If, however, the seller will only consider your offer without you having recourse to a French Mortgage, then French Mortgage Xpress can advise you on how to proceed by pre-approving your loan application to significantly lessen the risk of losing your deposit.