I find the best funding

Once I have found a property, signed the agreement and proven I have begun my search for financing, I have 45 days to obtain a loan.

Joint purchasers: which regime corresponds to my situation?

Marriage PACS (civil union) Cohabitation
  • Common property limited to acquisitions
  • Division of property
  • Since 2007, division of property (possibility of opting for joint possession)
  • Joint possession
  • SCI.

Common property limited to acquisitions

This regime applies when no prenuptial agreement has been signed. It specifies that property acquired by persons after marriage is shared. We therefore own the property jointly in equal proportions. Any property acquired by a single individual before marriage remains that person's property. If one spouse dies, the estate is divided into two equal parts.

Division of property

There is no common estate in the division of property regime. Each party to the union owns property purchased separately, before and after the union, except for shared family accommodations (even if only one spouse is the legal owner). In the event of death or divorce, each personrecovers his or her own property and invested share.

Joint possession

Distribution

In joint possession, partners may choose their contribution to the accommodation (30/70, 40/60, 50/50, etc.). The breakdown is written into the property deed. If not otherwisespecified, each partner owns half of the property. Once the purchase is made, each owner has rights over the entire property.

Consent

This regime has many advantages, but also presents a significant downside: unanimity. Everything must be decided together, with both parties agreeing. Otherwise, the French Civil Code stipulates that, "no one may be forced to remain in joint possession." Therefore, if I decide to sell the property, my partner cannot object (and vice versa).

Advantage To establish the need for both partners' consent, we sign an agreement before the notary. This includes a clause (with a set duration not to exceed 5 years) that offers protection in case of death or separation. For example, we can stipulate that one partner becomes the sole owner of the property if the other partner passes away.

Death Separation
  • If I (as owner) die, my partner does not inherit (unless there is a will) but may reside on the property for one year.
  • If we commonly agree to sell, each of us recovers our respective share of the sale price.
  • If I wish to buy my ex-partner's share, I have priority over outside purchasers.

We purchase through an SCI (Société Civile Immobilière, a civil real estate company)

Purchasing through an SCI means that the company buys the property and becomes its owner. Consequently, we (called "partners") are not the actual owner of the real estate, but have "shares" in the property. We then become the tenants of the property's company, if so desired, free of charge.

However, creating a company has some downsides. We must write articles of association for the SCI with the help of a notary (not mandatory), including:

  • Appointment of one of the co-inhabitants as manager, with the other as successor if the first one dies;
  • Dissolution conditions (unanimous dissolution, upon the death of one co-inhabitant, etc.);
  • Separation, upon which the individual who so desires may keep the property;
  • Death, in which case heirs cannot alone decide to dissolve the company or sell the property.

There are few situations in which creating an SCI turns out to be essential:

  • As part of a collective investment (between spouses, or even between family members, friends, etc.);
  • To protect co-inhabitants in the event of death (to avoid joint possession);
  • To facilitate estate planning (donation or inheritance).

AdvantageAddition of a 'tontine' (co-inhabitation) clause: Upon the death of the owner, the 'tontine' clause allows the spouse or co-inhabitant to become the owner; heirs have no right to object. The surviving spouse is then declared to be the property owner since acquisition. In the case of separation, the agreement cannot be dissolved without the consent of both parties.

Search for financing

The search for financing must begin as soon as the sale commitment has been signed. As I do not have the entire sum at my disposition, I must obtain a loan offer from a bank within 6 weeks to 2 months after signature.

To make my search easier from the outset, I can use a broker such as Meilleurtaux, who takes charge of my application and offers me different loan proposals. In this case, I must halt all banking procedures I initiated alone. Meilleurtaux will not be able to negotiate with banks if I called upon the banks first (this is the broker's role).

I receive several loan offers

By accepting a proposal, I agree to send my application to the chosen bank.

You are committed to reimburse your mortgage Loan. Verify your ability to reimburse before committing.