The conclusion of a property transaction in France may well differ substantially from what you experience at home. Once a property has been chosen and a price struck, a written agreement should be concluded as soon as possible, especially as there is a danger of finding that the property has been purchased and the paperwork concluded by another purchaser.

The two most common forms of enforceable written instruments are a purchase agreement (compromis de vente) and a purchase offer ( offre d'achat ). These documents are normally in a pre-printed format and are usually completed together. The documents define the terms of the sale, and indicate any suspensive clauses or other conditions of sale.

The purchaser will not be given his copy directly as it will be mailed to him by recorded delivery. He has seven working days to decide upon his purchase. Should he change his mind he has to notify the vendor of his intention by registered post within 7 days.

The deposit is usually 10% of the purchase price, if after the 7 days of reflection the purchaser changes his mind and decides not to buy, the deposit is forfeited. The deposit will be returned should any suspensive clause not be realised, i.e. not obtaining a loan or building permission for a pool etc. The agreement can state that should the vendor change his mind he will be financially penalised typically to an extent equivalent to the deposit.

To conclude, once a written agreement has been signed by both parties, a deposit paid and 7 working days have elapsed the contract is binding. From thence on, the matter will be handled by a notary. It is very important to understand that the notary does not act for you and may not seem to be acting in your interests. This is because he is, by law, a servant of the State and is mainly responsible for seeing that property transactions and title are properly concluded.

The notary will:

• Hold the deposit in his escrow account (which cannot accumulate interest or be touched without the client's consent) and will be deducted from the amount due on completion.
• Be responsible for the search concluded on the property, to ensure that there are no planned constructions which would devalue or spoil the property.
• Establish title to sell, and indeed that there are no financial liens on the property.
• Establish whether a syndique on an estate is owed money or has decided on any major works on the property.

Examine compliance with all the measurements, zone rule and anti-parasite rules.

At this stage should any of the searches present something important the purchaser will have valid reason to withdraw from his acquisition, the deposit will be returned and the contract broken.

Things to Think about

• French law is not the same as in your native land. The Napoleonic legal code has some draconian elements. Chief among these are :
• The issue of compulsory distribution of inheritances which can over-ride a will.
• The level of French inheritance taxes.

We strongly advise that you discuss your personal objectives and situation with tax and legal specialists. We are able to make the appropriate introductions to English speaking professionals.