Buying Real Estate in France safely

17-11-2010

Caution is the watchword in buying real estate in France! Indeed, this particular act of purchasing a property is a journey full of pitfalls and traps, in which it is easy to fall if you are not assisted by a French Lawyer and warned!

If an individual wishes to acquire property, he must often make many steps, but this complicates the exercise if he faces many stakeholders. It is easy for a novice to get lost in this maze of problems.

An estate sale is generally realized in two steps: the signing of an agreement to sell, then the signing of the deed of sale that makes the sale itself.

The sale agreement may be signed through an estate agent or notary, or else directly by the buyer. Whatever the case where the buyer is, he must bring to the drafting of the agreement to sell the utmost attention.

Indeed, for the sale "promise of sale is sold", that once the seller accepted the offer under the proposed conditions on the price and the thing by the buyer, the buyer is involved. The contract is then formed! The training contract prevents the buyer to waive its acceptance without risk to liability and therefore be sued for damages.

Especially, when the completion of the sale of the property is related to obtaining a loan from a lending institution or bank to finance the purchase. In this case, obtaining the loan is a condition precedent, that is to say that the sale is only possible if the loan is accepted! If this seems a priori condition precedent favorable to the buyer since the latter is released from the obligation to purchase the property in case of refusal. It should be emphasized that, conversely if the loan is granted, then the contract is concluded.

In view of these implications for the buyer, subordination, and interdependence of purchase to obtain the loan, it is important to be extremely vigilant in the drafting of the condition precedent of loan agreement, including its amount, duration, .... .

Obviously, these issues are the source of substantial litigation.

In some cases, buying a property is made without using a credit or a loan, then it should be mentioned in the sale agreement, under pain of being applied to the provisions on specific legislation to housing credit .

All of these rules relating to the purchase of a property linked to a loan or not, designed to protect the borrower, may prove to be a double-edged sword for the buyer who would not assist a lawyer in the matter.

If a sales agreement is a pre-contract, it is possible for the buyer and seller to conclude a sales agreement, but this time, the implications for both contractors are more important than in the presence of a promise selling because it is a real contract.

Being permanently engaged, the failure of a sales agreement may result in the payment of damages, or the parties may be forced in court to pass the final act.

Again, caution is the mother of all security! In addition, some particular time of withdrawal is given to the purchaser in certain circumstances, an acquirer advised by counsel not be ignored.

The second step, ie the sale itself of the property must be done before a notary.

Any dispute arising after the signing of the deed before the notary can cause the initiation of prosecution. Thus in case of no show or refusal to sign the act of one of the signatories, the notary draws up a report of failure, and insofar as one party continues on this path, it may be asked to court for compulsory enforcement of the sale.

Similarly, if the recipient no longer wishes to acquire the property, it will bring an action before the High Court.

Just like the sale of a property, the acquisition or construction of a detached house have specific features.

If the acquisition of a house has no particular specificity when it is in very good condition (which can be determined with the help of an expert to quantify such work to do), the operation is much more complex when one decides to buy a house to renovate or acquire a building plot to build a house.

The mechanism under the sale agreement is more complex because, besides the question on funding, it is prudent to negotiate the condition precedent to obtaining a building permit, even if planning permission is positive...

Indeed, obtaining a building permit requires, besides the deposit that is best left to an architect, the intervention of the administration, whose time of instruction and response are specific and often exceed the time limits usual fixed between promise and deed.

This material generates substantial litigation and it is best to be firm on these positions before entering.... Otherwise the use of a French Real Estate Lawyer may be required…

Picovschi Lawyers

Vous avez aimé cet article, partagez-le sur vos réseaux sociaux !