timescale for paying deposit

[Fay]

Hi - forgive me is this is answered elsewhere but the 'search' facility isn't working for me. My question is concerning the timescale for getting the deposit money through to the notaire once the compromis is signed.

All the books (including one that I edited!) say that the deposit is paid on signature of the compromis. So if we go on our viewing trip, and find the place we want, do we have to have the money for the deposit to hand when we sign? Do we have to sign and pay then and there to ensure we have bagged the house? I ask because the money is in an isa and it seems a shame to take an uspecified 'enough' out in anticipation of finding something when we may come back empty-handed. Can the money be transferred from the UK after the compromis is signed, and is that something we just have to agree with the notaire/agent?

Many thanks for any light you can shed. Here's to April and the hope of finally making a dream come true!

Fay

[Will]

The books are being a little over-cautious, or are possibly out of date in this respect following the comparatively recent introduction of the so-called 'cooling off period'.

The deposit only becomes payable at the end of the stautory ten days from receipt of the compromis. So there is no reason why you should not be able to transfer it after your return to Britain should you find the house you want. There is no legal requirement to pay it at the time of signing the document, though to protect themselves against a high number of British defaulters I can understand why some agents or notaires might want to actually see the colour of buyers' money.

Interestingly, too, there is no set amount for the deposit, though 10% is normal as this is what you are likely to have to forfeit if you don't proceed with the purchase. In some areas 5% seems usual, while if the agent or notaire is convinced that you are an honest person it can be waived altogether.

Although the market for sensibly-priced houses in the lower to middle price brackets is still very strong in most areas, so you shouldn't hang about too long, don't be tempted by an agent's sales talk to sign a compromis there and then. If an agent demands the money to be immediately made payable to him/her then be very suspicious. Many agents have secure accounts for holding clients' deposits but as a general rule it is much better to pay the deposit to the notaire.

It's the signature on the compromis that counts rather than the payment of the deposit, but make sure the compromis is correct, and contains the right suspensive clauses, before you sign. If you do find the right house and want to secure it there and then, under French practice, an offer at the asking price should ensure it is taken off the market immediately and sold to you. While going back and forth with offers it is easy for somebody to jump in and secure the house by offering to pay full price, so do consider that if you are haggling over just a few euros.

[Hagar]

Fay,

Once you have seen the dream house it is not necessary to proceed immediately to the compromis.

In our case we made an "Offre d'Achat" through the estate agent. In writing using a standrad form that the estate agent provided (beleive a notaire can also provide these).

Offer was accepted and we then arranged to return in 3 weeks time to sign the Compromis at the notaire's office. That gave us time to transfer the deposit to the notaire beforehand. (and also to get a survey done before signing the compromis).

During that period the estate agent and the vendor took the house off the market. Guess it is a bit like the "sold Subject to Contract" that is used in the UK.

hope that helps

Hagar

 

[Guest CFrost]

Hi Fay

We have just signed our compromis and we advised by the immobilier to pay our deposit after the 7 day reflection period ( which didn't start until we had received the contracts some six days later!) This we did and we used using travelex corporate for the money transfer.  All went well and the immobilier has the deposit in their holding account as we have some clause suspensives. I don't know if this is the norm, but it was ok for us. The transfer of funds was quite painless and travelex were very good, but do shop around.  Hope this helps. Happy house hunting

Kimberley

[Hagar]

Fay,

My post crossed with Will's  which has very good advice.

I would agree that you should be very wary of any agent or vendor that tries to push you into signing a compromis straight away.

Be especially wary of the " we have a friendly notaire in the village who speaks good english - we can get it doen this afternoon if you like".

rgds

Hagar

[Paulhogan]

Good afternoon all

We bought last year in 58 and found the whole process really relaxed. We agreed a sum for the deposit, a nice round figure somewhere below 5% to be paid 10 days after we had received the compromis. After the compromis arrived we checked with the immo details of the account to pay the deposit in to, we asked when the money had to be in the account and he said sometime over the next few weeks, he didn't seem worried at all. In the meantime the euro rate dropped considerably so we were reluctant to exchange money at that time. We rang the immo, talked it through, and he said there was no rush. In the end we didn't pay a deposit, just paid the whole amount when we signed the acte, luckily the pound had strengthened by then.

Maybe we were just lucky, or looked really honest as Will suggested, but it really was stress free. just goes to show every deal is different, after all this is France.

Paul

  

[Fay]

As usual the good folks of this forum have immediately stepped up to the plate with great advice, help, encouragement and goodwill. Thank you all! Keep your fingers crossed for me that in April I will be posting with good news... :-)