From compromis de vente to acte authentique

After an agreement is reached between you and the seller of the house, the first step is to formulate this agreement into a contract. This preliminary agreement is generally called a “compromis de vente”. This is a legal and binding document* that describes the sale and the agreed upon conditions** such as financing or other suspensive clauses. This contract will normally be signed at a notaire’s*** office who will ask for a deposit (usually 5 or 10% of the agreed price) and who will subsequently draw up the definitecontract, the acte authentique.

Lengthy procedures

Before this latter document can be signed, the intended transaction must be reported to a number of official bodies who have a right of pre-emption: the mairie(commune), the département(county) and, if there is any agricultural land involved, the SAFER. (“société d’aménagement foncier et d’établissement rural”)

All these procedures can take up to as long as 3 months. Then, when all conditions and bureaucratic requirements have been met, all parties meet again at the notaire’s for the final signatures**** and the transfer of ownership to the buyer. From this moment on you are owner of and entirely responsible for the house in the eyes of the French law. Before signing the notary may ask for proof that you have taken up insurance on the house.

Proof of ownership

A copy of the deed will be sent to you after a couple of months but as proof of ownership – necessary to open accounts at e.g. telephone and electricity companies, open a bank account etc – the notaire will issue a attestation de propriété in which he officially states that you are the new owner.

Funds transfer

Before any document can be signed, the necessary funds must be deposited on the notary’s bank account or handed to him in the form of a (certified)French bank cheque for the deposit before the signing of the compromis de vente. This deposit can sometimes be delayed by agreement but must be in place before signing the acte authentique. Both the buyer and seller need to provide the notary with a number of documents necessary for the transaction. See our list below.

* A seller is held to put in a certificate, produced by licensed experts, indicating the presence in the property of xylophages (notably termites), asbestos and the presence and amount of lead in paint, before the compromis de vente is signed. The outcome of this report can be used to void or renegotiate the( verbal) agreement. If, for practical reasons, the report is produced after signing the compromis de vente, there should be corresponding suspensive clauses in the contract permitting you to cancel should the outcome of the report be unacceptable to you.

** Under French law a buyer has the right to unilaterally cancel a compromis de vente without giving any reason, within 7 days after signing. If the buyer wants to cancel after that period, without being able to appeal to a suspensive clause in the contract, the deposit will be forfeited.

*** The choice of notaire is normally the buyer’s. However the seller is allowed to be represented by his own notary. In this case the 2 notaries must share the fees. It does not increase the cost for either buyer or seller .

**** If, for any reason, one or more signatories are unable to be present, he or she can give power of attorney to a third party. This can be a friend or relative or, if none of these are available, a staff member of MidiEstates or even the notaire’s secretary. This power of attorney or procuration is given under strict conditions and valid only for this transaction.