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If you are planning to buy a house in France, you should be aware of the procedures, which may differ from those in your own jurisdiction. In this article, we will summarize the entire process step by step, from making an offer to signing the sale agreement.
Find a house you like and that fits your budget
When determining your budget to buy a house in France, you must also include additional expenses, which amount to approximately 7-8% of the purchase price.
The potential buyer makes an offer (offre) to the seller.
Once you find a house you like and that fits your budget – either through a real estate agent or on your own- an offer must be made to the owner. Although it is not a legal requirement, the offer is usually made in writing.
It is possible to set a validity period for the offer.
The seller may accept the offer, reject it, or make a counteroffer. The parties may then sign a preliminary sale agreement (avant-contrat). The preliminary agreement is not a binding contract but a promise between the parties regarding the house and the purchase price. The seller cannot increase the purchase price after this point.
A promise to sell (promesse de vente) is signed by and between the buyer and the seller.
Upon mutual agreement between the seller and the buyer, a promise is to sell is signed. This is a binding agreement that is signed before a notary public.
The promise to sell usually includes the following details:
- Contact details of the buyer and the seller,
- Land registry information and address of the property,
- All sale and transfer transactions since the construction of the property,
- Encumbrances on the property,
- Records of unit owners,
- Purchase price and payment method,
- Term of the promise to sell and the deadline to sign the sale agreement.
The buyer can withdraw within 10 days.
The buyer can withdraw from the promise to sell within 10 days of its signing before the notary public.
If the buyer withdraws after the expiry pf 10 day period, they must pay a penalty to the seller.
Down payment (“Indemnité d’immobilisation”)
The buyer is usually required to pay 10% of the purchase price to the bank account of the notary public following the signing of the promise to sell.
After this, the buyer cannot recover the down payment if the sale is not completed.
The sale of the property can be conditional.
The promise to sell may state that the final sale is conditional on the approval of the buyer’s loan application. If the buyer’s loan application is rejected, the obligations of both parties regarding the sale are terminated without any indemnification or penalty.
Sale contract (Acte de vente)
The period between the promise to sell and the sale contract is usually 2 to 3 months.
A letter is sent to the municipality to verify whether it has a pre-emption right over the property. The sale contract cannot be signed until the municipality responds. The municipality must respond within 2 months.
The notary public uses this period to prepare the documents to be included in the sale contract and to gather and review the documents relating to the title and the property. Meanwhile, the buyer uses the period to complete their loan application.
The sale contract is prepared by the notary public and signed by the parties before the notary. It is permitted to sign the contract electronically.
Should you have any questions regarding the purchase process in France or require professional assistance, please do not hesitate to contact us.
