Lending Legislation and the "Catch 22"
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French Property Insider Don’t miss a single issue of French Property Insider! “Whitelist” French Property Insider by adding ” This email address is being protected from spambots. You need JavaScript enabled to view it. ” to your address book. Getting a mortgage in France is easier than you think… Let us show you just how hassle-free it can be to get a French property mortgage for your dream Paris pied-à-terre or villa in the country! Visit French Property Loan or contact our Mortgage Manager at This email address is being protected from spambots. You need JavaScript enabled to view it. Bonjour French Property Insider Subscriber, NEW LEGISLATION REGARDING LENDERS AND THEIR INTERMEDIARIES France continues to legislate control over the real estate industry, this time with restrictions on the lending institutions and their intermediaries, or brokers. The new laws (Code Monétaire et Financier: Art L. 519-1 à 5, Activité d’IOB; Code de la Consommation: Art L. 321-1 et 2 / Art L. 322-1 à 3) require that those providing intermediary services to the lenders must hold specific licenses to act officially on behalf of a client and manage their confidential files. Intermediaries include: mortgage brokers, agents and introducers. To obtain the licensing, the broker must satisfy certain levels of education in France and/or work experience. We have always worked closely with several lenders that offer loans to non-residents — at no charge to our clients for this service. The new legislation changes nothing about our ability to assist our clients in finding financing, as we can continue to recommend the lenders we feel will do the best job. The one major difference is that we no longer have the right to physically manage the file — meaning that our clients must work directly with the lenders and their agents to provide their financial data and discuss the loan products. We can, however, discuss and advise you when it comes time to make the final decisions about which loan works best for you. For all inquiries regarding financing in France, please contact [email protected]. THE “CATCH 22” OF FINANCING: THE “CLAUSE SUSPENSIVE” Sellers in today’s world are nervous about their buyer receiving financing and are loathe to allow what’s known as a “clause suspensive.” This is a contingency on the purchase of a property to obtain the necessary financing. When the contingency is in place, should the buyer not receive loan offers to fit with the parameters of the contingency, the property goes back to the seller, the deposit goes back to the buyer and everyone starts over. Now you can see why a seller prefers to be confident about the sale going through! It’s all a bit of a “Catch 22,” too. The banks cannot issue a formal loan offer on a pro This is just one reason why you should have your financ We are all scrambling to get the loan application in so that at least one bank can make a value judgment and our client can feel confident enough to proceed with the purchase. We are juggling to keep a balance of the issues and take as little risks as possible. We urge you to start the financing process early. You can contact the lenders we recommend by visiting our Web site and contact them directly for more information — just be sure they know Adrian Leeds Group referred you! A bientôt, Adrian Leeds
P.S. West Village New York City studio apartment (with a perfect view of the Empire State Building) is available for vacation rental all of April for as little as $180/night, $1150/week, $3,200/month. Located in the heart of the coolest ‘hood’ in the city. “It’s super cozy, clean and comfortable.” A 50% deposit reserves your stay. See the apartment at West Village Studio. For your reservations requests, email: [email protected]. P.P.S. Don’t miss the House Hunters International episode “Sizing Up the Parisian Suburbs” on March 9 at 11:30 p.m. and 1:30 a.m. E/P. As a job opportunity brings them to Paris, will Rich and Rachel find enough space for their soon to be family of four? Find out when House Hunters International peruses the villages surrounding Paris. P.P.P.S. Mark your calendar for next Tuesday, March 12th when David Burke, author of “Writers in Paris: Literary Lives in the City of Light” talks about Bad Boys and Bad Girls of Literature in Paris at Parler Paris Après Midi — 3 to 5 p.m. at La Pierre du Marais. It’s free and it’s fun! Visit Parler Paris Après Midi for more information.
PARLER PARIS APARTMENTS Welcome to your home in Paris. Home is how you will feel in a private apartment in Paris that has the “seal of approval” from Parler Paris Apartments and me, Adrian Leeds. Featuring Le Grand Ciel One of our most amazing apartments — only 25 square meters, but with lots of light and great views from three large windows, a sweet separate eat-in kitchen, surrounded by great transportation and has what one recent guest says is the most comfortable bed she has ever slept in! Visit Parler Paris Apartments: Parler Paris Apartments to view our full selection or email: [email protected]. FREE one-hour consultation! Guests of Parler Paris Apartments or Parler Nice Apartments who are considering the purchase of their own “pied-à-terre” for pleasure and profit, can take advantage of a free one-hour consultation while enjoying the apartment in the City of Light or on the Riviera. Simply complete the request form to book your consultation. | {forward}Forward this e-mail to a friend{/forward} | {readonline}Click here to view it online{/readonline} Copyright 2013, Adrian Leeds® |
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