Scrivener Act
The Scrivener Act is a two-part French law — Act no. 78-22 of January 10, 1978 on consumer credit and Act no. 79-596 of July 13, 1979 on mortgage credit — that established the foundations of consumer borrower protection. It introduced mandatory pre-contractual formalities, the reflection period, and the loan-approval condition precedent in purchase agreements.
Key points
- The 1978 act created the first rules on fair advertising and pre-contractual information for consumer credit.
- The 1979 act made loan-approval conditions precedent mandatory in real-estate purchase agreements.
- It requires a minimum 10-day reflection period for mortgage credit between receipt of the offer and acceptance.
- The borrower may only accept the loan offer after the period expires; any early acceptance is void.
- These provisions have been largely integrated into the Consumer Code, but the term 'Scrivener Act' remains in professional use.
Frequently asked questions
Why is the loan-approval condition precedent called the 'Scrivener clause'?
Because the 1979 Scrivener Act made this clause mandatory in all purchase agreements and preliminary contracts where the buyer is financing the acquisition through credit. Before this law, buyers could find themselves committed to a purchase even if the bank refused. Since then, obtaining financing is a condition precedent by operation of law, unless the buyer expressly waives it.
How does the 10-day reflection period concretely protect the borrower?
The period prohibits the borrower from accepting the offer before it expires, even if they find it favorable. This constraint gives them time to compare against potential counter-offers, consult a third party or broker, and make their decision free from bank pressure. The lender, for its part, is bound by its offer for 30 days.
Is the Scrivener Act still in force today, or has it been replaced?
The Scrivener Act's provisions were codified into the Consumer Code (Articles L. 313-1 et seq. for mortgage credit) and partially updated by EU directives, notably the 2014 Mortgage Credit Directive (MCD). It has not been formally repealed as an original text, but its rules now live within the Code, enriched and sometimes amended by subsequent legislation.
In practice
A couple signs a purchase agreement for an apartment and receives a loan offer from their bank on March 15. The broker explains that they cannot return the signed offer before March 25 at the earliest (10-day period). The broker advises them to use this window to compare against a second bank proposal obtained in the interim. This is the protection introduced by the 1979 Scrivener Act.
Official sources
- Law no. 78-22 of 10 January 1978 (Scrivener) · Légifrance
- Article L519-1 of the Monetary and Financial Code · Légifrance
- Prudential supervision and resolution authority · ACPR (Banque de France)