Acte du Vente

[ColinE]

Hi Folks.

Could someone please answer this question.

When we were trying to buy a house in France, (which we lost) the agent told us there was no need to pay the 5-10% deposit, on signing this could be written into the document, is this a normal thing to do or was it something special to this agent?

Thanks  Colin 

[andyh4]

No it is not normal - but equally not unique.

Welcome to the application of "rules" in France

[P-D de Rouffignac]

It is not a matter of 'rules' but of custom that a deposit is paid over at the time of signing the 'compromis de vente' and this is held in a sequestered account either by the notaire or the agent, if he is authorised and insured to do this. The amount is not fixed and can be up 10% (or more) and it is taken as a sign of seriousness/good faith by the intending purchaser of the property. However, I have bought one property without handing over a deposit (in specific circumstances) and I have seen sales go direct to the final 'acte de vente' without signature of a 'compromis de vente'.

In the case of new-builds a pecentage deposit (small) might be paid at the stage of reserving a plot or property to be purchased VEFA (off-plan) and there is normally a right to cancel and withdraw from the purchase, for example if the building work does not start on the daye specified in the reservation document. This can happen if the developer fails to sell the required number of plots before he can start building work and the completion date obviously slips or in extreme cases the project is cancelled. If all proceeds according to schedule, stage payments are made as the building nears completion (regulated by French law) with a final 10% handed over on acceptance by the buyer.

As always the situation is fairly complex and requires a reasonable knowledge of the property business and French law to understand. Property buying in France is highly regulated for the protection of both buyers and sellers.

Peter-Danton de ROUFFIGNAC MA LLM www.francemediterraneanproperty.com