Need to secure real estate when faced with creditors or a complicated divorce – you want to save your wealth and maintain your quality of life? Need to refinance?
Our TMI experts offer you a solution to leverage the ownership title of the property with a right of repurchase to be exercised by means of an agreement.
The principle is to allow the owners to temporarily sell their property to an investor while continuing to occupy it against a monthly rent. They therefore become tenants and can repurchase their property once their difficulties have been overcome.
The tenants, once their debts are cleared through the sale of their home, will be able to pay their rent, which is fixed at the market price.
The return (6.5% on average) can be explained because the property is sold at a discount depending on the location and quality of the property.
Therefore, during the contractual period, the tenant retains the possibility to buy back his home, the price of the property being fixed from the outset at the cost price for the investor plus transfer duties and the Marginal Taxation Fee (5%).
Beyond that, if the tenant does not exercise his option of repurchase, the property remains vested to the owner who will then benefit from the discount in its entirety.