A preliminary sales agreement is a contract used to outline the transfer of real property in France from one party to another. There are two main types of contract typically used, the Promesse de Vente and the Compromis de Vente.
The Promesse de Vente is a promise to sell the property to the buyer for a specific price within a specific timeframe. The timeframe is agreed upon by both parties and can be as long as four months. Typically a deposit of 10% of the purchase price is paid by the buyer at the time of signing. The buyer then has seven days in which he may change his mind and withdraw from the contract without penalty. After the seven day cooling off period, the contract is legally binding and the purchaser must purchase the property within the option period or forfeit its deposit. (more…)
Completion Day in a French real estate transaction signifies the day in which a piece of real estate under a sale and purchase agreement is finally transferred to the buyer. Typically the parties of a real estate transaction will meet in the office of the notaire on Completion Day.
In preparation for completion day, it is important for foreign investors to make the proper arrangements for their funds to be delivered to the notaire. This may include opening a French bank account, converting funds from one currency to another, transferring funds from your bank account to that of the notaire’s, or possibly obtaining a bankers draft. Funds that have not been cleared will cause the delay of completion. (more…)
The act of making a purchase causes the release of endorphins into your system resulting in a temporary euphoric experience. The more emotional attachment you have to a particular purchase the more extreme you experience can be. There is little in this world that one can purchase with more emotional value than a home. When looking at a home for the first time, you can be enthralled by the beautiful kitchen or excited by the possibility of decorating the nursery and unknowingly overlook the negative aspects of the property. If you are purchasing a property in France, you have seven days to come to your senses. (more…)
French notaires are government officials. They are under the authority of the French Minister of Justice and are appointed by decree. In general, the notaire is a government official who is responsible for receiving all the actes and contracts which require a seal of authenticity. They ensure documents are dated accurately, held in trust, and provide authentic copies. (more…)
In France, adding a Tontine Clause to your purchase contract will have long lasting repercussions. Real estate is often owned by multiple individuals. When multiple individuals own a piece of real property, concerns may arise about the status of the property after the demise of one of the owners. In France, the issue of rights of survivorship can be addressed by use of the Tontine agreement.
The purpose of the tontine clause is to ensure that when multiple individuals own a piece of real property, ownership passes to the surviving owners when there is a death. All owners must agree to the tontine clause for it to be inserted into a purchase contract. The tontine clause must be added to the contract at the time of purchase, not after. (more…)
Buying property in a different country can be a daunting project. Property laws vary between countries, currency exchange can be a headache, and often it’s difficult to find information regarding the area where the property is located. However, there are a few things that you can do before beginning a property transaction which can make the process run a bit smoother. (more…)
