The lease assumption allows a tenant to become owner of the property after a certain period of occupation under the contract.
This formula, which results from a contract covered by the Act of July 12, 1984, should not be confused with the obligation to propose to the lessor, in priority to its tenant, although intended for sale.
No contribution payable
Any building is concerned (old, new, renovated), provided it is a building used for residential or mixed use. The seller may be an individual or a company (public housing, for example). For small budgets, the advantage is that there is no contribution to make. Throughout the duration of the tenancy, the tenant pays a fee that includes the rent itself, and a monthly installment on housing prices. The revision of the fee may be greater than the variation of the index quarterly INSEE cost of construction. At the time of sale, the tenant pays the price of housing set in the original contract, less payments made throughout the duration of the lease.
A reservation
Before the final contract, the seller and the tenant sign a reservation contract. The tenant then pays 5% of the amount of housing. This deposit is paid into a special account and can not be transferred or referred to the signing of the contract. These funds will be returned to the tenant if the sale is not successful. Otherwise, it will be repaid on the first charge. The lease assumption must be signed by a notary within three months of the reservation (or two months after the completion of the building if it is under construction). Three months before the time fixed for the sale, the purchaser receives a proposal to purchase housing and in two months, a draft final sale. If he refuses to exercise the option, it has three months to vacate the premises. The seller must refund the sum of the savings portion of his payments but he can get the compensation payments. Conversely, if the seller refuses to sell, he must repay the installments and pay an indemnity equal to the maximum 3% of the price of housing.
NAMELY
This contract may be financed through a social lending, housing type changing social (our September issue), which allows 100% financing. For programs that correspond to that status, check with your landlord, or the CAF of the ADIL.