COMPASS IMMOBILIER: Purchasing French Property - first contract (part 2)

In relation to the asbestos, termite and lead reports, the general practice now is that these are drawn up and produced at the time of the first contract. Whether the reports are compulsory will depend upon the age of the property and, for termites, where it is situated geographically. In addition, there is now an energy performance report which is obligatory for most residential properties, as well as a natural and technological risks report and checks of any gas or electrical installations that date back more than 15 years. The cost of these reports is at the vendor's charge.

You will purchase the property in the condition that it is in upon the date of completion. The vendor, unless he or she is a professional in the real estate field, only owes you a guarantee for defects in certain narrow circumstances. It is very much a case of ‘caveat emptor’ or ‘buyer beware’.

In this context, it should be noted that surveys are not common practice in France, although they are gradually becoming more widely used. Should you require a survey then it is possible for one to be undertaken, though the person responsible for drafting the survey should of course be carefully chosen. The survey is almost always at the purchaser's charge. It is also advised that a survey should be completed prior to the cooling off period (referred to immediately below) to enable you to have the choice of not proceeding if you are not satisfied with the outcome. If the vendor agrees, it is possible to include a condition suspensive relating to the obtaining of the survey but this needs to be carefully worded to ensure that you are protected if the results are unsatisfactory. A general ‘subject to survey’ condition would not be sufficient.

You will benefit from a seven day cooling-off period at the first contract stage. The exact way this works will depend upon each case but usually the signed contract will be sent to you by recorded delivery letter. If you decide to withdraw during the cooling-off period, you do not have to provide a reason and any deposit paid must be returned within 21 days of the date of the withdrawal. The vendor does not benefit from a cooling-off period.

The deposit is also payable at this time. The deposit can be up to 10% of the purchase price and should be transferred directly to the notaire’s account or to the escrow account of an agent if there is such a facility. It will then be held until completion occurs and will be put towards the purchase price. It will not earn interest. The best means of paying the deposit is often by transfer to the notaire’s/agent’s bank account as there can be difficulties with cheques that are not drawn on a French bank account (even Euro cheques). Never pay cash as it can be impossible to prove payment and in the hands of an unscrupulous person it can disappear very quickly if a refund is claimed!

Copyright All Rights Reserved Victoria Headdon, Compass Immobilier