What does the SCRIVENER Act say?
The SCRIVENER law of January 1978 imposes on the lender a particularly strict formalist. The latter must formulate his proposal in a written offer and send it by registered mail to the borrowers and any guarantors (Article L312-7 of the Consumer Code). On the other hand, it is more supportive of the borrower who can refuse the loan offer by simply refusing to sign it .
The prior offer must mention all the characteristics of the financing:
- The type (s) of loans granted
- The duration
- The rate (proportional and TEG)
- The object
- Insurance conditions (group or delegation contract as well as the guarantees offered).
It must also include a number of annexes:
- A provisional amortization table, pending the final table that will be sent once the funds have been released.
- The indexation conditions in the event of a revisable rate with a projection of increase and the impact on maturities or duration (depending on the terms of the variable loan), as well as on the overall cost.
- The general conditions of the borrower insurance if it has been taken out with the bank.
Once forwarded the loan offer definitely commits the bank, but not the borrower who has a period of 30 days to commit or decline the proposal.
In case of acceptance
If the borrower accepts the loan proposal, he must sign and return the offer by registered mail with acknowledgment of receipt between the 11th and 30th day . Indeed, a 10-day cooling off period is imposed on the borrower before committing.
In case of refusal
There is no formality imposed to warn the bank , the proposal becoming null and void after 30 days from receipt of the documents. However, as a courtesy vis-à-vis the banker, it is recommended to notify him of the refusal .
Note : In case of cancellation of the sale for a reason not dependent on the borrower, it is sufficient to bring to the bank the proof of the cancellation (by recommended way preferably).
Fees for non-conclusion
If the law allows a borrower to refuse an offer of mortgage loan , however, it authorizes the lender to ask for study fees whose amount is fixed by decree (Article L-312-14 of the Consumer Code).
Important: the education fee clause for non-conclusion of the contract must be included in the loan agreement. Otherwise, the borrower may refuse to pay their amount.
Refusing the bank proposal does not cancel the sales agreement
If the borrower refuses the proposal of the bank and that it is in all respects in conformity with the characteristics contained in the compromise, the purchaser remains engaged in the sale. Only a refusal of financing from the bank allows to play the suspensive clause of obtaining a mortgage.
Only refuse an offer if it does not meet your expectations or if you are certain of obtaining better conditions. In any case, notify your banker.