Sale with retention of title

Sale with retention of title

When the buyer is unable to obtain the traditional bank loan , with the help of a notary he can still make his proposal to the seller. In practice, a deed of  sale with retention of title can be carried out . What is the priority sale of properties? Simply put, the buyer gets delivery of the asset  (house) right away, and can start enjoying it immediately,  but ownership is not yet transferred . This only happens once the buyer finishes paying all the installments agreed with the seller

It is, therefore, a rather different solution than the one that provides for the classic mortgage. In this case, in fact, the buyer immediately becomes the owner (having to pay off the debt contracted with the bank little by little). It must be said that the buyer, in the event of a sale with retention of title,  assumes all the risks upon delivery  of the property. Just to be clear, should even significant damage occur, for example following a natural event such as an earthquake or other, the buyer will still have to continue to pay the installments to the seller, as per the initial agreements.

Termination  of the sales contract with retention of title  can usually occur due to a possible default on the part of the buyer. However, failure to pay only one installment, not exceeding one eighth of the price, does not determine termination. Moreover, in the event of  termination due to the buyer’s default , the latter is in any case rather protected since the seller will have to return the installments already paid. Obviously, except for different initial agreements and net of an adequate compensation for the use of the house and for any damage caused to it (indemnity).

If you decide to sell a house in installments, in the event of non-payment, it may be difficult for the seller to immediately recover the availability of the property. It often happens that we have to arrive at a  forced execution procedure , with the unfavorable timing that all this can entail.

Following the registration of the sale with retention of title, the purchase becomes opposable to third parties  and this constitutes another important protection for the buyer.

As regards the accounting of the sale with retention of title, as already mentioned, the buyer officially becomes the  owner only after having paid the last installment .

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