Sale guaranteed?

[Jo]

I am in the process of selling my house with the intention of moving to another property here in France. I thought that once the CDV was signed and the 7 day cooling off period over, providing there were no clauses inserted, the sale should proceed and should the purchasers pull out, they would lose their deposit.

However, a lady who came to view mine said her sale had fallen through long after the CDV was signed, the couple had decided to fund the purchase with a mortgage, AFTER they had signed the CDV, so there was no clause around failure to obtain a mortgage, the mortgage offer was withdrawn, the sale fell through, but she was informed by the notaire as the sale had failed due to lack of finance the couple would not lose their deposit. Since I was hoping to be able to start the purchase of my new house without having to wait for my sale to complete entirely, but can not afford to lose my deposit if my prospective purchasers don't lose theirs, I'm a bit confused and worried! Sorry to ramble a bit, but has anyone had a similar experience?

[PaulT]

Someone more knowledgeable will surely be along but my thoughts are the same as yours. If the purchase is subject to a mortgage then this needed to be inserted to the CDV otherwise tough luck.

Perhaps, they then decided they did not want the property so said they had decided to get a mortgage and could not and their cousin the Notaire went along with it.

[EuroTrash]

I thought the same as PaulT, that if there is no get out clause in the Compromis then the sale has to go ahead or the buyer loses their deposit. I would have thought that if the seller had insisted, the notaire would have had to enforce the letter of the contract, after all if both parties signed it, it must be legally enforceable. But like all these things, is it worth the hassle.

My notaire was very particular about this clause. I told him I wouldn't be applying for finance as the sale of my house in the UK was agreed, but he actually suggested putting the clause in anyway, on the grounds that if the clause was not inserted and the sale of my house in the UK fell through at the last minute, I would still be committed to buying the French house.

Jo, I don't see why you can't start the buying process as long as you make sure you have the finance clause inserted in any compromis you sign as a buyer.

[idun]

Notaires! Bof, I have yet to have dealings with one that gave a damn and had some integrity. Sure that there must be some, somewhere in France, law of averages says that there must be.

When we sold, I am still annoyed that they ended up costing us a 1000 or so €'s more than it should. I had hoped, as my sons' best friends parents worked there, that it would have all been 'honest' dealings, but in the end it wasn't, both the estate agent and notaire cared not a hoot as long as they got their fee.

Go and see another notaire Jo with your paperwork and see what they say, as I said, there must be one somewhere who 'cares'.

[woolybanana]

My understanding is that it is not as cut and dried as most people think. Yes, a deposit can be forfeited but it has to go through the courts which can take an age, cost a fortune and end up with no result.

[Jo]

Hadn't thought about that Euortrash! D'oh! Good idea, that would give me a bit of protection.

idun, after my last lot of dealings with the notaire after my husband's death, I share your opinion! Will be trying a different one for this sale.

[Daft Doctor]

Having bought both land and a property in France, the legal position is exactly as the others have said, i.e. no 'clauses suspensives' in the CDV, then the deposit is forfeited if the buyer pulls out after the cooling off period. What I don't understand is how it needs to go through the courts for the seller to be given this deposit, since it must be lodged with the agent or notaire at the point of the CDV becoming binding. Legally, it is the buyer who has no right to that money if they then pull out, it should be paid over to the seller without question. If the buyers aren't happy, they are the ones who should attempt to challenge the validity of the CDV through court action. I think sadly that the lady mentioned by the OP has been duped, or their relative lack of knowledge on the subject has been exploited.

[Jo]

My thinking entirely Daft Doctor, and since she had incurred not inconsiderable costs sending her horses back to the uk, she had initially considered moving back, I am surprised she hasn't pursued it.

[andyh4]

Another misconception is that the seller gets the deposit if the case is won. In fact the notaire and estate agent seem to have first call and in the event of anything being left the seller can fight their corner and try and prove financial loss in order to get something.

[NormanH]

Of course legally the buyer should lose their deposit, (and also pay the agent's fee for the loss of the sale) but this is not something I have ever heard of happening, and I have never actually paid a deposit.

The flat I bought earlier this year was a case in point. The Notaire was quite happy with a cheque that covered his fee in case I pulled out, but no-body worried about a deposit.

You should always use a condition supensive  claiming that you need finance, preferably using a friendly bank or credit agency who will give you a negative answer if you later change your mind..

[Pommier]

I've heard of a buyer pulling out of a purchase after the cooling off period. The notaire hadn't taken a deposit and said there was no point pursuing the person for any money. I've also heard that even if a deposit has been taken, it has to go through the courts to prove financial loss.

[PaulT]

What about the seller putting in to the contract that should the buyer pull out after the cooling off period then the buyer shall pay to the seller x euros