Sale with retention of title, alternative to the mortgage

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Can you buy a house without necessarily having to go to a bank to ask for a mortgage that you probably won’t get? Yes, it is possible, by resorting to an alternative method such as sale with retention of title – also called “ sale with retention of title ”.

It is a sales contract through which the buyer comes into possession of the purchased thing while not acquiring the property, which remains with the seller until the buyer has paid all the agreed price

buy a house

Basically, it is a normal real estate sale contract to which only one clause has been added, the one called retention of title . If the contract concerns a house, the buyer immediately takes possession of the property, that is, he lives in it immediately, leaving the property to the seller until the payments are completed.

This is indicated by many as one of the (few) solutions for those who need a house but, at the same time, do not possess the essential liquidity to be able to purchase it. Basically, it is useful if the buyer wants to immediately take possession of the house but cannot pay the full price at the time of the deed, even if he asks for the mortgage, and when, on the other side, the seller wants to close. the deal, with the necessary guarantees, without necessarily immediately taking possession of the entire sum; the latter will collect a higher price over time, including interest: once all payments have been closed it will not be necessary to proceed with a new deed of sale, because the buyer will only have to respect the expiry of the installments, exactly as he paid a mortgage.

What are the benefits of this agreement? First of all, the buyer will be protected, that is, he will not be subject to any change of mind by the seller. Then, again the buyer, will be able to sleep peacefully, not having to fear judicial mortgages that are borne by the seller: the sale is transcribed in the real estate registers and any possible mortgage on the seller’s assets will have no value towards the future owner.

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