Did you know?
In terms of real estate loans, the signing of the preliminary sales agreement is significant because it serves as the beginning point for the time allotted to you to gather the cash necessary to purchase your future home.
A property is purchased in two stages: the tentative sales agreement is signed first, followed by the formal deed of sale two to three months later.
What exactly is a compromise? It’s a “pre-contract,” in which the seller promises to sell his property to the buyer and the buyer promises to buy his property from the seller.
The preliminary contract allows them to agree on the price of the property to be sold, the general and specific terms under which the sale will take place, the conditions precedent, and the deadline for signing the deed of sale.
If you arrange a very long lead time, the vendor may need an advance to secure your commitment to buy. The practice of an advance, which can vary from 5 to 10%, is also used by real estate developers.
Whether or not an advance is paid at the time of the agreement, the registration fees for the sales agreement are fixed at 200 DHS in addition to the stamp fees.
If the parties can complete the sale immediately, a compromis de vente is not required. If the buyer needs a loan to fund the purchase, a compromis de vente must be written to legally tie the future sellers and buyers.
After the preliminary sales agreement is signed, the timeline for securing a real estate loan is set.
It is critical to understand that the sales agreement is in principle valid for 30 days. However, signing it for 45 or 60 days is ideal. In fact, the bank must provide its consent and each of the parties and the notary must complete the administrative procedures before the sale can be completed.
How can you shorten the time it takes for your loan to get approved?
Processing times differ between credit institutions. While traditional banks have longer process times, certain institutions are more efficient in file assembling, with the option of submitting your request instantly online.
What happens if you don’t get the loan?
The sales agreement is simply canceled if the bank(s) contacted denies your mortgage application. You can show the seller proof of the loan refusal, such as copies of the institutions’ negative responses.
In brief, you have 45 days after signing the preliminary sales agreement to locate a mortgage!
