In the advance case (sale subject to resolving condition), the property passes to the buyer, but the contract is automatically dissolved (with the effect that the property returns to the seller) in the event of the purchaser’s default, that is, if the latter does not pay the price agreed.
As foreseen by the civil code, with the sale with reservation of ownership the seller allows the buyer to pay the price of the property in installments, according to the interest rate agreed in the contract just as happens with a loan from the bank . At the same time it gives him the opportunity to take possession of the house and to inhabit it since the deed and Bond and Rent Advance.
However the ownership of the property does not transfer immediately, but only to the payment of the last agreed installment (which could mean after several years). In this way, if the buyer should stop paying, the seller does not need long and costly lawsuits to return to owning the house, as this has always remained in his name.
The advantage for the seller is to find a buyer without difficulty and with the guarantee of a fixed and constant income. At the same time, in the event of default, the latter need not resort to the court to obtain the termination of the contract (without prejudice to the procedure for the release of the house in case of obstruction, possibly with the bailiff and the aid of the public force). Furthermore, only one deed is sufficient; therefore there is no need for a second deed to transfer the property.
The structure is similar to that of a lease, a contract by which an asset is leased with the possibility, after a certain period of time, to become its owner (paying the ransom price) or to withdraw from the Bond and Rent Advance contract.
The advantages for the buyer are even more evident: they do not need to obtain an initial capital or a bank loan; he may have suffered a house to live in and, although he is not the owner (and, therefore, not being able to sell or lend it), he can use it according to his own purposes. Not only that, any creditors could not foreclose on the expected property, since the latter, if it does not correspond to the last installment, does not become its owner.