The sale with retention of title is a particular type of real estate sale that is still not widespread but is becoming increasingly popular due to its undoubted convenience and the guarantees it offers both to the seller and the buyer in terms of risk reduction in the sale https://www.pioneerhb.com/we-buy-houses-dallas-tx/
What is the sale with retention of title and how does it work?
The sale with retention of title is a particular type of real estate sale that is still not widespread but is becoming increasingly popular due to its undoubted convenience and the guarantees it offers both to the seller and the buyer in terms of risk reduction in the sale .
In a sale with retention of title, also known as a “reservation of title agreement”, the buyer begins to use the property immediately after signing the deed and undertakes to pay the agreed amount in deferred installments according to the times and modalities foreseen in the sales contract .
For the entire payment period of the installments and until their extinction – within a maximum time of ten years – the ownership of the asset remains with the seller. With the payment of the last installment, the buyer becomes the sole owner of the property. In the event of a serious default in payments, on the other hand, the seller has the right to request the termination of the contract and to take back the property.
Contract and legal aspects of the sale with retention of title
The sale with retention of title is regulated by article 1523 of the Civil Code, which specifies the rights and duties of the seller and the buyer.
As far as the buyer is concerned, it should be emphasized that, together with the right of residence, he also assumes all the costs and risks connected with the use of the property: the buyer of a property with retention of title is in fact required to pay for the ordinary and extraordinary maintenance of the building in which he is staying, even though he is not yet formally the owner . Similarly, the buyer will also have to answer for any damage caused to the property and provide for their repair.
