There are various choices of preliminary contract, each with different ramifications.
The "Promess d?Achat" is intention, on the side of the buyer only, to purchase the property, without any financial commitment.
The "Offre de Vente" or "Offre d?Achat" is simply the making of an offer on a non-listed property, creating a non-binding contract, until such a time that both parties choose to accept it.
The "Compromise de Vente" is the most commonly used type of contract. The "Compromise de vente" will bind the buyer with the seller under what the seller views as an expression of strong interest in their buying the property. The contract ensures that the seller will keep the property available for the contracted buyer. In the first draft of the contract of sale, the "compromise de vente" will describe in detail the property and exactly what it is that you are buying. Also outlined will be the price and all fees involved, the commission of the French agent, how the purchase it to be financed and the date of completion. This must be signed by both parties, the seller and the buyer, with your local solicitor and that of the seller as witness. The date of completion, when the final contract will be signed, is generally 2 months after the signing of the "Compromis de Vente". It should include clauses and conditions, applicable to both parties, in the event of the break of the contract.
To secure the "compromise de vente" you will have to show your:
- Passport
- Marriage or divorce papers
- Property loan, mortgage or cash payment, with all the relevant paperwork.
The "Promesse de Vente" is the second most common contract. It works under the same principle as the "Compromis de Vente" but you don?t have to show your funds or have a property loan or mortgage in place, as you will give a deposit as insurance to the seller of your intention to buy the property. This contract allows you up to 3 month in which to organise your finances and pay the deposit. After the 3 months you will be required to sign a final contract committing you to the sale, where you will also have to pay the full amount of the property. This contract involves financial insurance to secure the deal and you will have to pay 10% of the net purchase price of the house. If you retract yourself from buying the house the seller will keep the 10% deposit as compensation for your withdrawal.
If you have taken a U.K. loan/ mortgage or are paying with cash, you will be obliged to deal through your French solicitor who will insure the seller of being paid. Your French solicitor must be covered by insurance for this.
The "compromise de vente" can take up to 4 weeks to be completed, at which time you may have returned to the U.K. In such instances, to speed up the process, a useful option is to give power of attorney to your French solicitor, and to make sure that you get all the relevant paperwork translated into English.
