The Buying Procedure
Two preliminary sales contracts are possible after the verbal or written offer ( offer d'achat ) has been accepted:
. the compromis de vente
. or the promesse unilatérale de vente.
Both contracts specify the precise address of the property and its total habitable space with a brief description (number of rooms and their functions), the agreed price and the agent's commission (normally included in the sales price), completion and possession dates (usually a three-month period). It is important at this point to detail fixtures, fittings and equipment such as fitted bathrooms and kitchens which will remain part of the property. Both contracts ask for immediate deposits, held in a sequestered account, of up to ten per cent of the purchase price.
The Unilatérale Contract
The unilatérale contract does not commit the buyer to purchase the property whereas the seller is bound to reserve the property for the potential buyer at an agreed price for an agreed period of time. Deferment clauses ( conditions suspensives ) should be included in both contracts making the purchase subject to any required finance being obtained - it is advisable to detail the nature of the loan and the organization concerned - and null and void if a local town planning decision is revealed which will depreciate the value of the property. The buyer's deposit is returned in these instances. A droit de préemption clause will also ensure that, in the event of a compulsory purchase order before completion which precludes the sale, the buyer recovers their deposit.
The Compromis Contract
The compromis is the contract more frequently used. Estate agents are quite accustomed to drawing up these preliminary contracts. If you are dealing directly with a seller you are advised to have the preliminary contract drawn up and signed before a notary, preferably the one who will draw up the acte authentique . Bilingual assistance from a qualified person is also strongly recommended when signing agreement to documents as they will usually only be in French.
Useful Information
- A seven-day cooling-off period was introduced a few years ago giving the buyer additional protection at this stage. Buyers can change their minds, no questions asked, within seven days of signing a preliminary contract.
- During the three-month period prior to the acte de vente definitive/acte authentique the notaire verifies property title, outstanding loans, charges, obtains the asbestos, termite and lead-free paint certificates (if they have not already been produced) and checks land registry details and town planning regulations.
- The completion deed reconfirms the information given in the preliminary contract, with more detailed information on the house or flat, outbuildings and land, and with the exclusion of any previous suspensive clauses.
- Estimated notary fees, which are of course in addition to any negotiating fees if the notary also acts as the sales agents, are given under ' frais de notaires ' in the notaries' website www.immonot.com.
