Real estate credit innovation: a guarantee without suspensive conditions

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Real estate loan: Guarantee with zero suspensive conditions

Pretto, the 100% digital real estate loan broker, today announces the launch of a unique offer on the market: the “zero suspensive conditions” guarantee (0CS). This initiative aims to offer concerned buyers unprecedented security and peace of mind in purchasing their property. It also constitutes an attractive guarantee of solidity and reassurance for sellers.

A context that requires innovation

In the current context of the real estate market, marked by the waiting attitude of buyers and the excitement of sellers, Pretto decides to take advantage of its technological platform and its expertise, to offer a solution that gives security to buyers and sellers. Traditionally, the previous condition to obtain a loan is a protection clause for buyers, the main purpose of this clause is to allow you to withdraw without penalty in case of failure to obtain financing. However, perceived as a risk by the sellers, this clause can be counterproductive in the negotiation between the seller and the buyers, the latter giving priority to a “more solid” file in their eyes (who will not use this clause).

The guarantee of zero suspensive conditions

Pretto’s 0CS guarantee allows the buyer who benefits from it to make a purchase offer without including any suspensive conditions related to obtaining their property loan. In the event of failure in the search for financing, Pretto undertakes to reimburse the buyer the amount of the immobilization compensation paid to the seller, thus covering the buyer’s financial risk.

A transaction security tool

This guarantee, which removes the risks perceived by the seller, therefore represents a powerful lever of persuasion, which allows the buyer not only to benefit from the seller’s preference, but also to better negotiate a price reduction. It also gives them peace of mind since Pretto undertakes, in case of failure to obtain financing, to compensate the buyer.

For sellers, the 0CS guarantee, backed by a trusted third party, represents security in terms of file quality and solidity, and a guarantee, in case of failure to obtain financing, of safe and quick compensation.

A robust process that guarantees a decision in less than 24 hours

  • Prior to the purchase offer : After performing a real estate loan simulation Pretto validates the buyer’s eligibility for the 0CS warranty by submitting his file to the entire validation chain: validation by a Pretto credit expert, study of the conformity of the parts and the veracity of the information provided, validation by a dedicated risk committee on the eligibility of the file for the guarantee before finally being able to issue a certificate of feasibility.
  • When you sign the sales promise : Pretto and the buyer sign the guarantee contract and the latter pays the guarantee payment. Notaries are informed of the terms of the contract. The buyer pays the classic escrow to the notary.
  • After signing the promise of sale : Pretto takes care of finalizing the financing schedule.
  • In case of funding failure : Pretto refunds the buyer after proof of escrow payment to the seller.

An offer accessible to as many people as possible

The 0CS guarantee is accessible to all Pretto customers who have properly sized their project, regardless of income, and submitted to the study of their files. The cost to the buyer is 1% of the sale price of the property and Pretto undertakes to cover the immobilization allowance for the property up to 5%.

A conclusive test phase

Pretto estimates that about 75% of its customers are eligible for this system and many have already benefited from it, here are two examples:

Client case 1 : M. is a 38-year-old self-employed worker; Ms., 33 years old, is a permanent executive in a communications agency; Its cumulative income is €78 thousand net per year; They bought an apartment in the 18th for €425,000 + €60,000 of work with a contribution of €150,000 and are in debt, post-operation, of 32%.

=> The guarantee of zero suspensive conditions made it possible to obtain a discount of €30,000

Client case 2 : M, 58 years old, is under an expatriation contract in Asia in a large French company; Ms., years is without profession; Its cumulative income is €163 thousand net per year; They bought a second house in Cap Ferret for 1.1 M€ with a contribution of 490 thousand € and are in debt, post-operation, of 34%.

=> As the couple was interested in a very competitive property, the guarantee allowed their file to be prioritized by the seller.

We are very pleased to launch this unique solution on the market that confirms our desire to facilitate the journey of borrowers and to give them the best tools to carry out their real estate project” indicates Pierre Chapon, president of Pretto. “We are a solid and trusted partner for buyers and sellers, and in addition to market results, we offer them concrete security and additional insurance during real estate transactions. he emphasizes.

Frédéric Fortier, Etude Fortier Notaires adds: “ The guarantee of zero suspensive conditions offered by Pretto is the result of careful observation of the current challenges of the real estate market. It provides a solution that secures real estate transactions, facilitates negotiation and reassures all parties involved, making the buying and selling process smoother and safer.

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