Replevin

The replevin is a legal Document by which the creditor (often the bank) attests that the debtor completely refunded his loan. Auparavent, this replevin was automatic 2 years after the normal term of the loan.

Since the Reform of Safeties (ordinance n° 2006-346 of the 3/23/2006 published in the OJ of the 3/24/2006), the extreme duration of effect of the inscription (Mortgage or PD) is brought back to 1 year after the term of the loan (Article 2434 of the civil code).

Before this term, in the event of resale of a Real estate, the purchaser will require so that the borrower proceed to the replevin of the Hypothèque or of IPPD because the bank can make sell the good in the event of Impayé even if the owner changed. Thus, by this act, the recipient of the mortgage agrees to benefit from it more.

This replevin has an obligatory character and comprises a high amount of expenses. Certain organizations include in the initial calculation of the expenses of mortgage or the IPPD, the expenses of replevin.

Example

If you buy a real estate over 20 years and that you resell it at the end of 15 years, you will have to pay expenses of replevin (approximately 0,7% for a loan of 120.000 €). If you keep this good 2 years after the expiry of the loan i.e. 21 years, you will not have to pay expenses of replevin.

See too

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