3. Sale and Purchase Contract for Property in France

1. 3.1. Types of Sale/Purchase Contract
2. 3.2. Signing the Contract
3. 3.3. Role of French Notaires
4. 3.4. Use of Legal Advisors
5. 3.5. Pre-Contract Enquiries

3.1. Types of Sale/Purchase Contract for French Property

There are two main different forms of contract that can be used, either a Promesse de Vente or a Compromis de Vente.

In practice, there is little to choose between them, but increasingly the compromis is being used.

3.1.1. Promesse de Vente

A promesse de vente i is, in effect, an option to buy the property granted to the buyer by the owner.

It's full title is the promesse unilatérale de vente, or a 'unilateral offer to sell' made by the seller for a specified price and for a specific duration.

The duration of the option is agreed between the parties, but maybe up to four months.

A deposit of up to 10% of the purchase price is made on signing of the agreement. The purchaser has seven days during which time they may withdraw from the contract without penalty.

If they do not withdraw by this time then they are legally bound to purchase the property within the option period, or forfeit their deposit.

So be warned, whilst the option may be available for several months, after seven days you will forfeit the deposit if you later decide not to proceed.

3.1.2. Compromis de Vente

A compromis de vente is what may more commonly understood as a sale and purchase agreement, as there is a clear bilateral obligation.

Under the contract the owner agrees to sell to the purchaser and the purchaser in turn agrees to buy from the owner, subject to any conditions that may be stipulated in the contract.

A deposit of up to 10% of the purchase price is made on signing of the agreement and the purchaser has seven days during which time they can withdraw from the contract without penalty.