Apart from the complexities life offers, there are still ways on how to get tough things done. Accepting the complexity is much more like accepting the differences on the rules and processes of each nation. Through embracing these differences, you are able to blend and manage the situation making more favors that you will succeed.
Few decisions are necessarily made upon the time that you decided to participate in a leaseback property. The size and the location of the property you are looking for are the first things to consider. Within this process, you need to work put realistically and have a preliminary mortgage assessment done. This simple process will guide you and somehow tell you the average amount of money you will need to borrow if you were to finance your purchase with a mortgage. If you are done coming up with these decisions, and you have already chosen your French leaseback property, the same procedure is followed whether you decided to buy an apartment or a house to leaseback.
The start of the French leaseback buying process is marked by you having to take out an option on the leaseback property that you have selected. A maximum duration of 72 hours is set to each option by most leaseback developers. This option will put the property on hold for the 72 hours mentioned. This will ensure that no one will buy it from under you while you work your way through the process. And within the 72 hours, you shall need to transfer your deposit mount into an escrow account of the notary in order to reserve the property until the process has been completed. Usually, 5 percent of the purchase prices should be paid as a deposit.
Two contracts are to be reviewed and signed. The first one is a reservation contract and the second one is the commercial lease agreement or bail commercial. Traditionally, these contracts are written in French, but some French leaseback developers now have English translations. The number of contracts you need to sign depends on the developer. Included in the contracts are the floor plans, furniture agreements, descriptions of fixtures, and fittings. These contracts need to be signed as part of the reservation contract.
The bail commercial usually contains details such as the length of the lease and the guaranteed income that will be generated by your leaseback property in France. A complete mortgage application for your leaseback property is also needed. Moreover, you need to open a French bank account to receive your guaranteed income and from which to pay your mortgage.
After the reservation contract is also signed by the developer, the 7-day cooling off period begins. As determined by the laws, you can still cancel the purchase of your leaseback property even if the contracts are duly signed already. In this case, the entire deposit would be returned to you. . Anyone who owns a French leaseback has to comply with the regulations of the ‘Centre des Impôts’ (the French tax office). That is why every leaseback purchaser has to fill out a ‘Kit Fiscal’.
Now, when the mortgage offer has been signed and sent back to the bank, and the financing has been approved, the final contract will be made up. However, even if it is a French property, the title deed could be signed anywhere else outside France, in the most convenient area possible for you. To finish up the process, you may need to pay additional fee as the title deed is being signed by power of attorney. When all is done, you are now a certified owner of a French leaseback property.