COMPLETION DATE EXTENSION

[Jason Preston]

Has anyone any information on what happens when you need to extend the agreed completion date for a French purchase. We agreed to buy our French property 5 months ago and have paid our deposit (5%) with a completion scheduled for Early April. We have sold one of our properties and obtained a mortgage but we need to sell our house in the Uk to top up the purchase price and its sticking, we have no prospective purchaser as the last sale fell through.

I understand if we go past the proposed completion date the contract becomes void and we could loose our 5 % deposit and they could seek the remaining 5% by law.......short of reducing our house to a stupid price to sell are there any other options.....we dont want to Bridge!

Feeling under pressure now and not enjoying this part of the buying process.

HELP??!

[Nick Trollope]

AFAIK, "they" cannot expect more than the 5% deposit you have paid (there is no fixed level for a deposit) UNLESS the 10% figure is in the Compromis. Be aware that the an agent will probably also come after you for his lost commission, if the deal fails.

Did you not include a clause suspensive in the CdV regarding sale of a UK property? It would be normal under most circumstances, and your Agent (if there is one) should have included it, if he was aware of your circumstances.

Essentially, if you fail to complete your side of the contract, you will end up paying (inc the Agent's fees). The law is designed to protect both buyers and sellers.

That aside, get in touch with the Vendors (via the Agent, if necessary) and explain your situation to them. If they are serious about selling, then they will compromise with you. Failing that, get a bridging loan (painful, but cheap and "normal" in France).

Bon chance!

 

[Canardvert]

As I understand, if you fail to complete by the designated date then you could be due for the following penalties

Loss of deposit

Loss of 10% of the purchase price

Loss of agents fees

Loss of notaires fees

Loss of notaires fees again (as the transaction is deemed to have no reason to proceed then you could effectively be charged for the fees to buy, and then resell, the property back to the vendor).

The vendor could take out a court order to force you to buy the property.

In reality it is best to speak to your agent asap to explain the situation. The vendor may be willing to wait. If they are not then a french bridging loan may be an option. These are not as punative as their UK cousins and allow you to roll the interest up (at around 5.2% p.a) until your house sells.

Do not let it drag on. The vendor may be in the process of signing for another property which will make the whole situation much more difficult.

All of the above is purely my opinion. It should not be relied upon as legal advice. It is always best to consult someone specialising in French law in such cases.