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, using an alternative method such as the sale with retention of title – also called ” sale with retention of title agreement “.
It is a sales contract (as such governed by article 1523 of the civil code) through which the buyer takes possession of the thing purchased without acquiring ownership, which remains with the seller until the buyer has proceeded to pay the entire agreed price
In essence, it is a normal real estate purchase contract to which only one clause has been added, the one called retention of title . If the contract relates to a house, the buyer immediately takes possession of the property, i.e. lives there immediately, leaving the property to the seller until the payments are completed https://www.sellmyhouseinoklahoma.com/sell-my-house-fast-oklahoma-we-buy-houses-fast-for-cash-oklahoma/
In the event that the buyer does not honor the contract, the seller has the right to take back the house by resolving the contract, whatever amount the buyer has already paid. At the same time, the seller will return the installments already collected, however withholding a fee as compensation for the use that the buyer has made of the thing (art. 1526 of the civil code). The seller, on the other hand, will not be able to obtain the termination of the contract for the non-payment of a single installment that does not exceed one eighth of the price.
This is indicated by many as one of the (few) solutions for those who need a home but, at the same time, do not have the necessary liquidity to be able to buy it. Basically, it is useful if the buyer wants to immediately take possession of the house but is unable to pay the full price at the time of the deed, not even if he asks for a mortgage, and when, on the other hand, the seller wants to close the deal, with the due guarantees, without necessarily immediately taking possession of the entire sum; over time, the latter will collect a higher price, 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 installment deadline
