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Real estate: What are the advantages of a term sale?

Very often, the purchase of real estate requires obtaining a mortgage.The very low rates currently practiced are attractive.Nevertheless, banks tend to be more and more selective, and obtaining a mortgage is not always easy.An alternative solution exists with the term sale.This can be assimilated to a form of seller credit.Concretely, the buyer undertakes before notary to buy a property through a contribution of money and then by the payment of a certain number of monthly payments whose amount is defined in advance.The contribution is generally set at 5% of the price of the property concerned, but this amount can fluctuate according to the seller's requirements.A term sale is most often echeloned over a period from ten to twenty years and therefore very much resembles a mortgage.

On the other hand, the buyer has no fees for paying or borrower insurance to take out, which reduces the costs of the purchase.Note that the term sale differs from the sale in life annuity because a deadline for payments is set in advance.In addition, if the seller dies, the buyer must continue to pay compensation to his heirs.

Free or occupied term sale

Tower sales can take two forms.It can be free or busy.As part of the free term sale, the buyer takes possession of the premises as soon as the authentic act signed with the notary.Consequently, the seller no longer has any charge to pay.Another solution is possible with the occupied term sale.We can also speak of a term sales with delayed enjoyment.In this case, the seller continues to benefit from a right of housing and use of housing.The duration of the occupied term sale does not necessarily correspond to the duration during which the buyer will pay his monthly payments.It is indeed an agreement signed during the deed of sale and which stipulates precisely on what date the buyer can take possession of the premises.

Immobilier: quels sont les avantages d'une vente à terme?

Note that in the context of an occupied term sale, the buyer must pay the property tax each year, while the seller must pay current charges (water, gas, electricity, etc.) and the tax ofhome, until he left the scene.

The main advantages of term sales

The advantages of the term sale are numerous, both for the seller and the buyer.For the latter, in addition to achieving substantial savings by not going through a conventional bank loan, this allows you to set a timetable really related to its means.As part of a free term sale, it can take advantage of the good without having paid the entire.For the seller, the term sale constitutes an annuity with monthly payments paid throughout the duration of the contract.In addition, these monthly payments are not taxable when it comes to the sale of a main or secondary residence.

In the event of death, the seller has the assurance that his heirs will continue to perceive the remaining payments due.It can also integrate into the contract an indexing of the monthly payments, this being calculated according to the index of the cost of the construction.Finally, in the event of non-payment of a monthly payment, he can benefit from a resolving clause and recover his property without having to reimburse the sums already perceived, provided that this has been stipulated in the contract.

(By writing the HREF agency)

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