Deed (notary deed) :
This document is drawn up by a notary or a bailiff. It is then published to the local office of the mortgages, which makes it opposable to any third parties, and even to parties not mentioned in the deed.
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Agreement to sell :
It is also commonly called “private agreement”, or « arrangement to sell », or “preliminary sale contract”, or “bilateral contract”. This official document binds both the buyer and the vendor to conclude the transaction as both parties have agreed on the price and on the property sold. This agreement binds in a reciprocal and irrevocable manner both parties once the conditions precedent is OK. Should either party renounce, the other party would and claim for damages as stipulated in the arrangement. A deed is the second step: it shall be drawn up by a bailiff or a notary. Upon signature, whether the real estate agent is present or not, the buyer generally gives a down payment representing 10% of the global price. ,
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Conditions suspensives de ventes :
is stipulated in the agreement to sell; when it is not OK, the agreement to sell is nullified with no damages. They either relate to the Law: permission to build, pre-emption rights, statement of risk analysis for termites, etc.), or to the one or many loans required by the buyer.
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Withdrawal deadlineAgreement to sell :
the withdrawal deadline is 7 days. The contract is sent by registered letter to the buyer. From the day after the first presentation of the letter by the postman, the buyer can withdraw; he must do it per registered mail with acknowledgement of receipt.notary deeds: Since June 1. 2001, a withdrawal deadline was established for the sale of properties (not valid for recently built ones). Once the agreement to sell is signed, the representative of the vendor must send one copy of the agreement to the buyer in order to prove at what date the withdrawal deadline starts. The contract is sent by registered letter to the buyer. From the day after the first presentation of the letter by the postman, the buyer can withdraw; Should the buyer fail to send a withdrawal letter within 7 days, per registered mail, he is then bound to purchase.
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Diagnosis Amiante
See the Code of Public Health (article R. 1334-24): the vendor of a real estate property built before July 1. 1997, must give on the day of the signature of the agreement to sell (at the latest), a statement of risk analysis for asbestos. This statement can only be made by registered companies.
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Pre-emption right :
Such right is held by some administrations or by some privately owned companies: they claim their right to be the first to purchase a property for sale (land plot, building, house, etc.). For instance, a town can claim its pre-emption right in order to purchase a building, or the SAFER can claim its pre-emption right in order to purchase a land plot of over 5,000 sqm. Whatever the estate, any pre-emption rights will have to be cleared before the sale is terminated.
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Statements of risk analysis
Under the French Law 99-471 (June 8. 1999), and the Decree 2000-613 (July 3. 2000), both aiming at protecting both the buyer and the vendor of real estates against termites, a statement of Risk analysis for termites shall have be drawn less than 3 months ago on the date of the notary deed; otherwise, the notary deed can be nullified.
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Carrez Law
The Carrez Law aims at binding the vendor of a co-owned building to stipulate, before the signature of any agreement, the precise surface of the sold property, whether old or new (isolated houses and estates are not concerned by the Carrez Law). Should the real surface be more than 5% inferior to the surface stipulated in the agreement, the buyer could then claim for a reduction of the price within 1 year from the date of the signature.
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Scrivener Law :
Enacted on July 13. 1979, this law aims at offering a better protection to buyers requesting a loan of a bank in order to finance their transaction. Among the many conditions precedent to the termination of the sale, number one is the obtention of any such loans. Furthermore, when the borrower receives the offer from the bank, he shall not accept it before the expiry of a 10-day deadline as from its reception.
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Risk analysis for lead
Decree # 99-484 (June 9. 1999). Subject to modification by the local Prefecture. Any sale or pre-sale of a real estate property built before January 1. 1948 is submitted to a preliminary statement of risk analysis for lead. Such statement shall have been drawn less than 12 months before the signature of the notarial deed.
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Private agreement
A private agreement is a document drawn up by two parties upon agreement. Such agreement is signed without the assistance of a bailiff or notary. The term “Private agreement” is commonly used for « agreement to sell ».
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Should you wish us to help or inform you, please feel free to contact us
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TRANSIMMO : International Real Estate SARL PERIGORD QUERCY IMMOBILIER 16, rue Fénelon – 24200 SARLAT LA CANEDA FRANCE
Phone: +33-553 29 44 90 – FAX: +33-553 29 76 89
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