4. Contract Conditions when Buying a Property in France

In this section we review the main sale conditions in the contract for the purchase of a French property.

There are seven main issues that we shall examine, as follows:

1. 4.1. Conditional Clauses
2. 4.2. Cooling Off Period
3. 4.3. Options to Buy
4. 4.4. Deposit
5. 4.5. Statutory Disclosures
6. 4.6. Local Rates
7. 4.7. Fixtures/Fittings

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4.1. Conditional Clauses in French Property Contracts

A conditional clause in French is called a condition suspensive.

The sale and purchase agreement will always be a 'conditional contract', in the sense that the wishes of both parties are subordinate to certain legal requirements, and the need to establish good title to the property before it can be sold.

So if you want confirmation on matters that do not form part of the formal searches to be carried out by the notaire, then you need to include them in the sale and purchase agreement.

Perhaps the most common and the most important condition is that relating to a mortgage.

Even if by some oversight this clause is not included, provided the agreement does not expressly state that the property is being purchased without a mortgage, the law grants a presumption that a mortgage is being obtained.

However, to ensure complete clarity, better to rely on an unambiguous conditional clause in the contract!

It is likely the notaire will insist that any conditions are stated with a degree of precision, in order to reduce the scope for later disagreement and potential litigation.

In relation to a mortgage, for instance, the information should include the length of time during which the clause should remain valid and the main details of the mortgage - amount, duration, maximum rate of interest.

It is not unusual for the purchaser to be granted 45 days to obtain a mortgage offer, after which the contract can lapse. If you are resident, and with a stable income, this is normally ample time, but it may be all too short for an overseas buyer seeking a French mortgage so, if this applies to you, try and negotiate a longer period in the contract.

Other conditions may relate, for instance, to planning consent, the purchase of adjoining land, and servitudes to the benefit of the property, or to third parties over the property.

As a general rule, the use of a 'subject to survey' clause is not used in France, primarily bacause there is no such thing as a sale 'subject to contract' as is the case in the UK. Accordingly, if there is an issue converning the condition of the property that you need to verify, you may need to be very specific about it, or resolve the issue before you sign the contract.

Neither is it normal for the sale to be subject to obtaining full planning consent, as a planning application is likely to take some time to prepare, and a planning consent, once obtained, can be later quashed if it breaches planning regulations.

Accordingly, where planning is an issue, it is normal for the sale to be conditional on obtaining an 'in principle' planning certificate called a certificat d’urbanisme, which you can read more about in our pages on the Planning System .

A new plot of land for construction of one or more dwellings requires a development permit, either a déclaration préalable or a permis d'aménager. The former is normally sufficient for a plot for an individual house, but it will depend on the circumstances of the development e.g. infrastructure requirements, protected area. The development permit should have been obtained by the seller, following which the buyer can later submit a separate planning application for the proposed development, although it would be possible to submit both at the same time.

The agreement may well also stipulate the manner in which the buyer will demonstrate, or not, fulfilment of the conditions, e.g. offer or refusal of mortgage, copy of planning consent or refusal.

The contract will also state the date by which a condition precedent must be fulfilled. If it is not realised by this date, then the seller can withdraw from the contract.

If a buyer withdraws from a contract because one of the conditions has not been fulfilled, they can be asked by the seller to demonstrate that they made suitable efforts to get the condition fulfilled. A court of law can also judge all conditions to have been fulfilled if a prospective buyer does not act in good faith.

Thus, in a recent (2008) court case, where sale completion was subject to planning being obtained, the court ordered that the sale was concluded, despite the fact that the prospective buyer had not made a planning application. The court ruled that by virtue of their inaction, the prospective buyers had waived the necessity for planning permission to be obtained!

In short, a buyer cannot use conditional clauses as a way of merely giving them more time to decide whether or not they want to proceed with the purchase!

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Next: 'Cooling Off' Period

Back: Pre-Contract Enquiries