The Leaseback Scheme

This fiscal system enables investors to benefit from secured extra income. It can also help them keep their standard of living once retired.

This scheme helps to develop the network of infrastructures specialised for the students, the elder dependant people, and Business Tourism.

By buying an apartment located in a Tourist Residence, a Serviced Residence, or an EHPAD (Residence specialised in welcoming elder dependant people). The unit needs to be rented out fully furnished, through a commercial lease, to the Management Company managing the whole residence.

1. •Receiving a rental income through the whole duration of the commercial lease
   

2. •Refunding of VAT (19,6%) on your purchase

A – The reservation

Day D: Reservation of the unit
D + 3: You send the receipt of your customer's deposit (5% of the buying price, sent to the notary's escrow account)
D + 21: You send your customer's complete reservation file to rtfrance.com
D + 30: rtfrance.com sends to the customer the original countersigned contracts
The day of the first presentation of this letter begins the 7 days cooling off period during which the purchaser can decide to withdraw from his purchase.

B –The financing

After the end of the 7 days cooling off period, your customer has 15 days to give his file to the bank and to send us his mortgage application form.
As soon as you have a mortgage approval and then the mortgage offer, you send us copies of same.
When you receive original offer from the bank, you have a cooling off period of 11 days. You can not send the offer accepted before the expiry of this 11 days period, but usually it needs to be returned before 30 days of emission, otherwise it is not valid any more.
The bank will directly send the mortgage file no the notary in charge of the development.

C –The signing of deeds

The notaire sends to the buyer his project of deeds, together with a POA if the buyer doesn’t wish to go to the notaire’s office for final signing of deeds.
The signing of the POA needs to be done within 30 days of receiving the project of deeds from the notaire.
Once the notaire has received the customer’s POA, his personal contribution, and the documents to be returned signed, your customer will be able to sign the deeds on behalf of the buyer.
The buyer is now the legal owner of his apartment.

D –The construction period

The builder / developer will send to the customer calls for funds depending on the construction process, together with architect’s certificates showing the stage of construction reached. Usually the calls for funds are as follows :

Foundations completed 30 %
Underground floor completed 15 %
1st floor completed 15 %
Roof completed 5 %
Interior walls completed 15 %
Building completed 10 %
Delivery 5 %

E –The delivery

The buyer is called by the builder / developer for the handover of keys. The keys will be given to the owner against the last payment due for the property.

The Purchase Process in France

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