4. Contract Conditions in France
In this section we review the main aspects of the sale and purchase agreement within France.
There are seven main issues that we shall examine, as follows:
- 4.1. Conditional Clauses
- 4.2. Cooling Off Period
- 4.3. Options to Buy
- 4.4. Deposit
- 4.5. Statutory Disclosures
- 4.6. Local Rates
- 4.7. Fixtures/Fittings
4.1. Conditional Clauses in France
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.
The purchaser may also add their own conditions.
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.
A conditional clause in French is called a condition suspensive.
Perhaps the most common and the most important condition is that relating to a mortgage.
If the property is being purchased with a mortgage then it is important there is a condition that makes completion subject to a satisfactory mortgage being secured.
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.
Top Tip!
As mortgages are cheap in France, and can offer tax advantages, you should consider buying with a French mortgage. You can read more in our
Guide to French Mortgages.
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. 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 contracts falls. There will also be another date for completion of the deed of sale.
The law only offers protection to a buyer who has acted in good faith.
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.
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!
Next: 'Cooling Off' Period
Back: Pre-Contract Enquiries
House Buying Process in France