The Compromis de Vente

Property purchase proceeds in two stages. The first is to sign a purchase agreement (Compromis de Vente) that binds both parties and takes the house off the market. The second step (the Completion, in English terms) is the “Acte de Vente” that occurs after the notaire has made all of the required searches and he is sure that he can assign you, the purchaser, good title to the property.

The purchase agreement is normally drawn up by the Estate Agent.  This agent should be regulated and bonded by the French government. Alternatively, and less usual, a notaire may be used to prepare the purchase agreement. A notaire is often used when things are likely to be legally complicated – purchasing a property with a lake and fishing rights is probably a good example, or by unregistered "agents" who are not allowed or are incompetent to prepare their own contracts.

This document is binding and it is important to understand the content before you sign it. Some French estate agents may well use a pre-printed agreement form with additional clauses being added by hand. Otherwise, the document may be individually prepared and typed up ready for signature. Clearly the latter approach is preferable as it will be clearer to read and simpler for you to check. Many French Agents will also provide a translation of the document to assist your understanding.

The Compromis de Vente sets out the details of vendors and purchasers including dates and place of birth and marriage, a description of the property with the land registry numbers and a land registry (cadastral) plan of the property sure that the property is clearly identified and can’t be confused with another property.. It will also stipulate the price, the amount of agency fees, the intended date of completion and other conditions of the sale such as any fixtures, fittings or artifacts seen at the property be included in the purchase agreement

You will be asked to pay a deposit of 10% of the house purchase price within seven days of the signing of the purchase agreement. This is normally paid to the Notaire who will be dealing with the transfer of ownership. In some instances this deposit is held by the French estate agent. If you are asked to make your deposit with the agent then first ask why. If you are satisfied with the reasons then check that the agent is bonded by one of the relevant French organisations before parting with your money.

If you do not complete the purchase your deposit may be forfeit and passed to the vendor in compensation, unless the sale is  terminated because of one of the reasons clearly identified in the purchase agreement (such as an inability to obtain a planning consent)  On the other hand, if the sale is terminated without due cause by the vendor then your deposit will be returned to you and the vendor owes you an equivalent amount in compensation.
What to look for in the agreement