Signing a sales agreement does not mean that the purchase is definitively acquired. For buyers who need bank financing, an essential step remains to be taken: obtaining a loan offer. As long as this is not published by the bank, the sale remains suspended upon fulfillment of the condition precedent for obtaining the credit. A period that is sometimes a source of stress, especially as file processing times have lengthened in recent years.
With the creation of the file, the banking meetings, the analysis of the borrower’s solvency, any negotiations on the rate or even the implementation of borrower insurance, several weeks may pass before a bank makes a final loan offer. This is why notaries today recommend that buyers anticipate their procedures as much as possible, sometimes even before having found the property they wish to purchase.
A minimum legal period of 30 days to obtain a loan after signing the promise of sale
The protection of borrowers is governed by the Consumer Code (Article L313-41). When a real estate purchase is financed by credit, the compromise or promise of sale must provide for a condition precedent for obtaining the loan. The law requires a minimum period of 30 days to enable the buyer to obtain financing.
“To obtain a loan offer as a suspensive condition, the law says that you cannot give it less than a month. This is Scrivener law. It’s in the Consumer Code”recalls Maître Céline Deschamps, notary and spokesperson for the Superior Council of Notaries. In practice, however, this deadline constitutes more of a legal floor than a real operational reference.
Why one month is no longer enough today
For real estate professionals, obtaining a loan offer in just 30 days is now an exception. “In practice, 1 month is too short. It has become almost impossible »assures Maître Deschamps. The reason is simple: banks today ask for more supporting documents and carry out more in-depth analyzes of files. Borrowers must provide numerous documents, while financial institutions carefully check the debt ratio, income stability and even savings capacity.
Added to this is the growing use of brokers, who sometimes take multiple steps with several establishments before selecting the best offer. ” There is the time taken to find the right bankthe time to gather all the documents requested by the bank, the time taken to analyze the file and obtain insurance »summarizes the notary.
Most often, compromises provide 45 to 60 days
If the minimum legal period is 1 month, the period actually included in the compromises is generally more comfortable. “ Overall, we leave two months »indicates Maître Deschamps. This deadline, however, remains contractual. The parties can agree on one and a half months, two months, or even more when a particular situation justifies it.
“It is a minimum legal period of one month, but contractually it can be increased as much as the parties wish”she specifies. In fact, professionals favor often delays of 45 to 60 daysin order to take into account current banking deadlines while avoiding immobilizing the seller’s property for too long.
Why insurance issues can extend delays
Certain situations require you to be particularly vigilant when setting the deadline for obtaining the loan. This is particularly the case when the borrower poses a health risk requiring medical formalities for borrower insurance. “For people who already know they have certain pathologies, it is necessary to take this into account and inform the notary at the time of the promise. Because if we plan for a classic deadline of two months, we know that it will be very difficult to complete the medical and banking process on time”warns Maître Deschamps.
Appointments with specialists, additional examinations then analysis of the file by the insurer can sometimes add several weeks to the initial schedule. Other situations may also justify a longer period: an already planned departure abroad, a recent change in professional situation or the need to repay certain loans before applying for real estate financing.
Can we extend the deadline after signing?
Yes, but only with the seller’s agreement. “We cannot force the seller to agree”recalls Maître Deschamps. In practice, however, many sellers agree to allow a few additional days or weeks when the buyer demonstrates that he is actually carrying out his procedures and that the financing seems to be on track.
“A seller is always in the interest of giving an additional period of a week or two, because otherwise he starts again from zero”she emphasizes. Transparency is therefore essential. A buyer who regularly informs the seller of the progress of his file will generally have an easier time obtaining an extension.
The most common mistake: believing you have time
For the CSN spokesperson, the main pitfall consists of wait before starting banking procedures. “Two months is not enough to start shopping around the banks and get an offer”she insists. According to her, future buyers should even consult their bank before starting their real estate search.
“When you want to buy real estate, you have to go to the bank before even finding the apartment or house of your dreams. You need to know if you are financeablet under what conditions before committing to a promise of sale »she advises. The best way to avoid a race against time after signing the compromise therefore remains to have prepared its financing in advance. A precaution which also reassures sellers, who are increasingly attentive to the financial solidity of potential buyers.
