The drafting of the private sale agreement or the compromise de vente as in Belgium, is a crucial step in the buying process. After you an offer transferred, the parties will appoint a notary. This notary will then draw up the purchase agreement. This article provides an overview of some of the clauses in a compromise de vente in France.
Description and condition of the property
This provision includes, on the one hand, the identification details of the property. Think location, address and cadastral reference, etc. But on the other hand, it also includes an actual description of the property. For example, that there is no potable water supply. Indeed, the factual situation may affect habitability in accordance with the Code de la construction et de l'habitation.
Purpose of purchase
By stating your objective of purchase - preferably as early as possible - you are letting the seller know why you wish to realise the purchase. That way, in order to act in good faith, he should inform you whether there are certain aspects of the property that might prevent the realisation of your objective. For example, consider an uninhabitability declaration (arrêté d'insalubrité) or the lack of a certain licence.
Statements by the seller and/or buyer
Here, the parties will make a number of statements about the factual or legal situation of the property. They often include these clauses for liability reasons. This can be to the seller's advantage. For example, that the buyer declares to be aware of a certain defect and assumes the risks. But a declaration can also be in favour of the buyer. For example, that the seller declares that he has not carried out any extension works.
With a condition precedent, you make the performance of the contract's obligations depend on a future event that is still uncertain. If this event does not occur within the predetermined period, the commitments lapse and the contract is deemed never to have been entered into.
The classic condition precedent concerns obtaining financing. The condition precedent of the absence of easements is also a classic one. In addition, you can insert conditions precedent for various reasons. For example, the condition precedent for obtaining a certain licence.
If fulfilment of a condition precedent fails, the buyer is entitled to repayment of the deposit.
Price and deposit
Naturally, the compromise de vente also its price and payment terms. Usually, you pay a deposit of 5% or 10% of the agreed price. You pay the balance + fees by deed. However, you can also agree another method of payment. After all, a deposit is generally not mandatory. Only in exceptional cases where the deed is only scheduled after a year, a deposit may be mandatory.
The advance payment (le séquestre) should preferably be blocked at the notary, but can also be done in the broker's third-party account or even in the seller's account.
Up to 10 days after signing the purchase agreement, you can change your mind and get the deposit back.
After 10 days refund depends on the reason why you discontinued the purchase. If you have a valid reason, such as failure to meet a condition precedent, you are entitled to a refund. If not, you will lose the deposit.
Do you have questions about your compromise de vente? Then definitely take contact on.