Pretto launches the Zero Conditions Suspensive Guarantee: a unique solution on the real estate loan market

A context that requires innovation

In the current context of the real estate market, marked by the wait-and-see attitude of buyers and the excitement of sellers, Pretto decides to take advantage of its technological platform and its expertise, to offer a solution to provide security for buyers and sellers. Traditionally, the condition precedent for obtaining a loan is a protection clause for buyers, the main purpose of this clause being to allow them to withdraw without penalty in the event of failure to obtain financing. However, perceived as a risk by sellers, this clause can be counterproductive in negotiations between seller and buyers, the latter giving priority to a “more solid” file in their eyes (who would not use this clause )

The zero suspensive conditions guarantee

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

A transaction security tool

This guarantee, which eliminates the risks perceived by the seller, therefore represents a powerful lever of conviction, allowing 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 the event of failure to obtain financing, to compensate the buyer.

For sellers, the 0CS guarantee, supported by a trusted third party, represents security relating to the quality and solidity of the file, and a guarantee, in the event of failure to obtain financing, of secure and rapid compensation.

A robust process guaranteeing a decision in less than 24 hours

Before the purchase offer: After carrying out a real estate loan simulation on www.pretto.fr, Pretto validates the buyer's eligibility for the 0CS guarantee by submitting their file to the entire validation chain: validation by a Pretto credit expert, study of the conformity of the documents 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 feasibility certificate.

When signing the promise of sale: Pretto and the buyer sign the guarantee contract and the latter pays the guarantee. 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 file.

In the event of financing failure: Pretto reimburses the buyer upon proof of payment of escrow to the seller.

An offer accessible to as many people as possible

The 0CS guarantee is accessible to all Pretto customers who have properly dimensioned their project, without distinction of income, and subject to the study of their files. The cost for the buyer is 1% of the sale price of the property and Pretto undertakes to cover the immobilization compensation of the property up to 5%.

A conclusive test phase

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

• Customer case 1:
  • M. is a 38-year-old self-employed worker;
  • Ms., 33, is a permanent executive in a communications agency;
  • Their cumulative income amounts to €78k net annually;
  • They bought an apartment in the 18th for €425k + €60k of work with a contribution of €150k and are in debt, post-operation, of 32%.

The zero suspensive conditions guarantee allowed it to obtain a discount of €30.000.

• Customer case 2:
  • M, 58 years old, is under an expatriation contract in Asia in a large French company;
  • Ms., years old is without profession;
  • Their cumulative income amounts to €163k net annually;
  • They bought a second home in Cap Ferret for €1.1M with a contribution of €490k 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.

For Pierre Chapon, President of Pretto: “We are very pleased to launch this unique solution on the market which confirms our desire to make the journey easier for borrowers and to give them the best tools to carry out their real estate project. We are a solid, trusted partner for buyers and sellers, and beyond market findings, we concretely offer them additional security and assurance during real estate transactions. »

For Frédéric Fortier, Fortier Notaries Office: “The zero suspensive conditions guarantee 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 negotiations and reassures all parties involved, making the purchase-sale process more fluid and secure. »