French Version Of Sale And Purchase Agreement

Although many call these fees “notary,” the notary receives only about 1% of the sale price of the real estate. The balance will be paid to the government to pay stamp duty and registration tax payments. So be warned, while the option may be available for several months, after ten days, you may lose the down payment if you decide not to continue later. The seller can also force the sale. During this period, it is forbidden to abandon the sale or offer the property to another buyer. The buyer benefits from the agreement to decide whether he wants to buy or not. A decisive advantage! In return, it pays the seller a containment benefit that theoretically corresponds to 10% of the sale price. If he chooses the acquisition, that compensation is deducted from the amount to be paid. However, if the owner renounces the purchase or does not give consent within the option period, the owner acquires the benefit as compensation. The government pays notary fees, which vary according to the sale price of the property. The third step in the process of buying real estate in France is the signing of a preliminary contract.

This is a promise to sell and buy the property. In the interim agreement (or “bilateral sales agreement”), the seller and buyer agree to round up the sale at a common price. Legally, the pre-contract is the same as a sale. If one party renounces the transaction, the other may compel the other to do so with additional damages. A down payment is required when the pre-contract is signed. This is again an important event and, in fact, it is the first financial commitment requested by the buyer. The security deposit usually represents 10% of the final sale price for the purchase of an old home and cannot exceed 5% of the retail price for the purchase of a new property. The amount of the deposit is left to the discretion of the buyer and seller and can be adjusted depending on the case. To be valid, the sales contract must be registered with the tax office within ten days of signing. In addition, if granted for a period of more than 18 months, it must be carried out by an authentic act.

The registration fee paid by the buyer is 125 euros. At the time of signing the contract, a down payment of 10% of the purchase price is paid. The buyer has a period of ten days during which he can terminate the contract without penalty. At the time of signing, the notary will inform the buyer of the tax impact of the purchase: he will give you an estimate of the costs necessary for the transfer of ownership and can already tell you the amount you pay on the day of the signing with respect to various taxes in proportion to the current year. This includes property taxes or, if applicable, service charges. Are you about to sign a pre-contract? This is called the “pre-contract.” The preliminary contract and the sales contract are two contracts with different consequences for the buyer and seller. The buyer is required to pay a down payment of up to 10% when signing the sales and sale contract, although a lower amount is quite legal. The seller must inform you within the time frame and in the form prescribed in the offer (usually by recommended letter and acknowledgement) with the offer.

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