France has known a real estate bubble for a long time. In many highly-rated cities, selling prices are only increasing disproportionately. However, the Covid-19 crisis and the scarcity of supply that it has caused have further reinforced this upward trend by promising a large number of owners a nice added value when they resell their property. However, even in the context of a flourishing real estate market, we are never sure to be the deal of the century. All the more so that one day or another, a bubble necessarily ends up exploding, or at least by cracking.
At the time of resale, we discover that his home paid for or embellished at a high price is now worth less than what we thought.
Worse still, it can happen to realize a capital loss when its value has fallen below the acquisition amount.
In such a context, the ideal is then to postpone the move until later ... except that not everyone can afford it.
A dismissal, a break-up or a transfer are all factors that can force an owner to change housing despite a transaction at a loss.
It is in anticipation of such situations that homeowners can take out a “resale guarantee” as part of their borrower insurance.
But is it really useful?
A forced sale
This optional option aims to compensate your financial loss in the event that you are forced to resell your property below its purchase value. Of course, not everything is taken care of. Most contracts limit the payment of indemnities to a few serious situations such as divorce, total disability of the borrower following an accident, death, redundancy or a distant professional transfer (except for trades where this is a frequent situation). Certain more favorable offers also take into account the separation of a PACS couple or in cohabitation or a twin birth. Likewise, this coverage may be limited in time (generally between five and ten years after acquisition) and involve binding waiting periods.
Subject to being in one of the situations covered, the insurer may then pay you an amount capped in the contract by a number (within the limit of 50,000 euros for example) or a percentage of the initial purchase price ( 10, 15 or 20%).
If you bought your apartment 140,000 euros (notary fees included) and because of a divorce, for example, you are forced to sell it for 122,000 euros, you will suffer a loss of 18,000 euros.
But thanks to the resale guarantee, you will probably be able to receive 14,000 euros from the insurance, or 10% of the purchase price, leaving only 4,000 euros to leave your pocket.
Nevertheless, in view of the multiple limitations imposed, the interest of the resale guarantee is relative.
So much so that many insurers include it free of charge in borrower insurance.
Succession: What happens to current loans?
Savings: Why is it interesting to have an old PEL?
The guarantee under the microscope
The guarantee under the microscope
It is necessary to examine the content of the resale guarantee to assess its interest:
Generating facts: what type of death is included (illness or accident)?
From what distance is the mutation covered?
Is partial disability included?
The warranty period: depending on the contracts, the warranty is tacitly renewed every year or is limited to a given period from the outset.
Waiting periods: they extend over several months depending on the risk concerned.
The cost of the guarantee: if it is offered, beware of the often reduced cover conditions.
When it is paid, it usually costs between 500 and 1,000 euros.
The calculation of compensation: does it take into account the only purchase price of the property or also the ancillary costs (notary fees, real estate agency, work, etc.)?
Real estate loan
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