If you intend to purchase a property in France, the chances are that the
French conveyancing system will be new to you, and the following text
is meant to help explain the appropriate procedures in practical terms.
A - THE CONTRACT
As in many countries, the purchase usually takes place in two stages:
A-1 The preliminary contract
(« compromis de vente ») is the document you sign in the case you wish
to purchase a re-sale, i.e a property that you will buy from a private
seller. It is as binding as a sale contract for both contracting parties.
The suspensive condition to this contract is the mortgage authorization
from the bank. On signature of the contract, you are generally asked to
pay a deposit of 10 % of the price, that you pay to the notary on
an escrow account.
A-2 The reservation contract
is the document you will sign in the case you make a purchase in a new
development or 5 years old at the most. On the day you make
the reservation, you will have to sign :
- The contract itself.
- The specification sheet of the building.
- The block plan as well as the floor plan.
- And in the case of a lease-back program, the lease contract.
You
will also have to make a reservation check of 5 % of the purchase price to the notary in charge for
the program to put the apartment on hold. this reservation may be subject to mortgage aproval if you are asking for one;
B - THE SIGNATURE OF THE FORMAL TRANSFER DEED
This « acte de vente » is to be carried out by a French notary which represents, as a public officer, the administration and is impartial. It is therefore
common practice to instruct only one notary. |
