Legal column
An overview of the French property buying process and how it diff ers from the UK, by Karen Tait
W
hile there are plenty of similarities between the
process of buying a property in France or in England and Wales (Scotland has a diff erent system again), there are some key diff erences too; the main ones being the contract becomes binding earlier on in the process in France, shortly after an off er has been accepted (whereas in England and Wales the deal is sealed towards the end of the process, making it easy to be gazumped). Also, a state-employed
notaire is required to be involved in any French property or land transaction. More of that later, fi rst let’s
take a look at the steps you will take towards owning a property in France.
THE PROPERTY BUYING PROCESS VIEWINGS: The agent will accompany you on viewings and may ask you to sign a bon de visite; this just proves that you were introduced to the property by that agent and prevents you, for example, going direct to the seller and cutting out the agent. If the agency has an exclusive mandate, only they will be marketing that property. Otherwise, there could be two or even several agencies marketing a property, and often at diff erent prices. Properties are also sold privately in France and also some notaires sell properties alongside their legal role. MAKING AN OFFER: As in
the UK, you could make an off er during the viewing or, as is more common, following the viewing, and via the agent. Technically, under French law,
if you make an off er which is accepted by the seller, in principle a contract has been made, binding both parties. In practice, this is very rarely the case, and an accepted off er is followed by a written contract. SIGNING THE CONTRACT:
The preliminary contract is usually called the compromis de vente (but may be a promesse de vente or promesse d’achat). A standard compromis is sometimes used by agents, but it is better all round for it to be drafted by a notaire. It contains the terms and conditions of the sale, including the purchase price and timeline, along with details about the property, and the buyer/s and seller/s. CONDITIONAL CLAUSES:
The contract can also include conditions suspensives. These could be, for example, that the sale is dependent on a successful survey or getting planning permission for works the buyer wants to make to the property. These clauses have to be agreed by the seller. If the buyer needs fi nance or a mortgage to buy the property, this must be included in the compromis. If any of the clauses are not met, the buyer can pull out without penalty. Both buyer and seller must sign the compromis. Nowadays, this can be done electronically, you don’t have to go to the notaire’s offi ce in France to sign. DEPOSIT: At this time a
deposit is usually paid by the seller, typically 10% of the sale price, and held by the notaire (or sometimes by the agent, in a client account). However, a deposit is not legally required and in some cases the sale goes ahead without one, for example, if the buyer is paying for the property with a 100% loan or mortgage.
84 FRENCH PROPERTY NEWS: March/April 2024
“Once the notaire is satisfi ed everything is above board, both parties sign the fi nal contract, the acte de vente”
COOLING-OFF PERIOD:
After the compromis de vente is signed, the buyer – but not the seller – has a 10-day cooling- off period, during which time they can retract their off er for any reason. After this, the sale is binding for both buyer and seller. If the buyer pulls out,
the seller loses their deposit. If the seller pulls out, they must pay back the deposit plus the same amount in compensation. CONVEYANCING: There’s a
period of around three to four months between the signing of the fi rst contract and the signing of the fi nal contract,
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