Faced with the legislative elections which have plunged the country into uncertainty, the real estate market seems expectant about the results of the polls.
“Real estate is a long-term market where confidence is fundamental. We had a return of confidence which was parallel to a slight drop in credit rates. All of this was wiped out by the result of the European elections and the dissolution”, laments Sébastien Benet, president of the National Federation of Real Estate of Haute-Garonne (Fnaim31).
New conditions precedent
Thus, faced with the uncertainty around the results of the ballot boxes, many property candidates have decided to put their project on hold. It must be said that between a risk of an increase in real estate taxes and the cancellation of the anti-squatting law carried, among others, by the New Popular Front, the fears may seem justified for households who have chosen to invest their savings in real estate.
To protect their backs, some have even decided to include in their sales agreement a clause that would allow them to withdraw if one of the two extremes wins the election. A far from trivial request with which a Lyon notary had to deal.
“A customer, who agreed on the price with the seller, told us that if the New Popular Front (NFP) passed, he wanted to retract, like in 1981 with François Mitterrand (who won the presidential election , Editor’s note). To this end, he asked us if he could include, in the promise of sale, a clause canceling the transaction if the New Popular Front wins the elections,” he told the newspaper. Figaro Me Martin Bretagne, notary in Givors, near Lyon.
Useless clauses?
If legally such a clause remains possible, Me Henri Chesnelong, notary and real estate delegate at the interdepartmental chamber of Haute-Garonne, questions the merits of such a clause given the imminent date of the second round, at namely July 7.
“A suspensive condition conditions my commitment to an event that is external to me. It is therefore possible to include it in a compromise. However, I am not sure that all of this really reflects reality. It is true that every election is synonymous with a slowdown in real estate activity, but, today, it would be enough for the future buyer to delay signing the compromise by a few days to bring into play the ten-day withdrawal period guaranteed by law”, notes the notary. .
Playing the long game
An analysis shared by Sébastien Benet, the president of Fnaim31. “The conditions and deadlines for organizing a real estate sale allow in all cases, between withdrawal, preparation of the file, classic suspensive conditions, to maintain an activity,” continues Sébastien Benet.
On the other hand, faced with the risk of an increase in rates symptomatic of a market that is more than sensitive to political vagaries, many investors have decided to put on the brakes. “Between the proposals of the different candidates, the lack of confidence, the lack of clarity of the banks, professionals are in a wait-and-see situation. But we must not forget that for the moment these only remain electoral promises,” concludes Sébastien Benet.