The sale with the right of repurchase, known as a sale with a right of redemption, is defined by the Civil Code (article 1659 and following). It is a real sale contract leading to the transfer of the property to the buyer.

This notarized deed allows an initial seller to transfer his property with a buy-back option in return for the principal price and the reimbursement of expenses incurred. This possibility of repurchase for the seller has a determined duration, going from 6 months to 5 years maximum. Moreover, the seller will be able to occupy the property under a repurchase agreement on the condition that he concludes an occupation contract and pays an occupation fee. This mechanism has the nature of a sale under resolutory condition. Indeed, if the seller exercises his right of repurchase, the initial sale contract will be deemed never to have existed.

The conditions of a sale with the right of repurchase are fixed in advance as well as the buyer's margin. This margin allows the remuneration of the buyer.

This legal arrangement allows the seller to free up cash and to continue to occupy the sold property during the term of the contract.

During this period, the buyer enjoys all the prerogatives attached to the property and also bears all the charges. At the same time, the seller can no longer grant a mortgage on the property sold but enjoys all the prerogatives attached to his rights on the property.

At the end of the deadline, we are faced with two possibilities:

  • The original seller has the funds to buy back the property and regains ownership
  • The original seller does not have the necessary funds, in which case he loses ownership of his property to the detriment of the buyer who can evict him and keep the property or resell it to recover his initial investment.

You own a property and would like to opt for financing through a sale with right of redemption. Submit your financing request via the link below.

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