The process can be split into the three following sections:

The Purchasing Process

Once you have found a property you wish to purchase and have agreed a price with the vendor, you should then formally record the agreement by signing a conditional contract. In France, unlike in the UK, once an offer is formally accepted by the vendor it could be considered to be legally binding.
The legal process involved in purchasing a property in France is fairly similar to the English procedure in that there are two stages - a conditional contract where a deposit (normally 10% of the purchase price) is paid, followed by the deed of sale.
However, there are three important differences:

1. The conditional contract consists of a pre-printed form which can often be filled in by the Estate Agent, not a solicitor. There are a wide variety of pre-printed contract forms in existence in France. Some have English translations, but these are often poor, making the documents difficult to understand and which could be misleading. Whilst in theory there is nothing wrong with many of the forms, they have not been specifically prepared for your transaction.

2. The conditional contract is signed in the very early days, usually shortly after your offer to purchase the property has been accepted. The contract is usually prepared to include certain conditions suspensives (precedent conditions or suspensive clauses), making the contract subject to those conditions being fulfilled. If a condition is not met, you have the right to withdraw from the contract and request the return of your deposit. However, unless the contract is carefully drawn up, the Notary will only return the deposit with the consent of the vendor, which may not be forthcoming.

3. It is commonplace for the conditional contract to specify who is responsible for paying the Estate Agent's commission. Even if it has been agreed that the commission will be paid by the vendor, in the event that you fail to complete the transaction for any reason not covered by the conditions suspensives, you will become liable for the payment. So you would not only lose your deposit but would have to pay the Estate Agent as well! For all these reasons, it is very important that all relevant conditions suspensives are included in the conditional contract and are unambiguously worded in your favour. There are various types of conditional contract that can be drawn up, and some should be avoided.

The Bilateral Sale Agreement - Compromis de Vente or the Promise of Sale - Promesse de Vente are the best forms of contract from the buyer's point of view. These can be drafted and witnessed by a suitably qualified Estate Agent or by a Notary. As mentioned above, bilingual versions of the documents are available.

Certain forms of conditional contract are best avoided....

* Exchange of Letters - l'echange de lettres
Many important considerations can be omitted from this document which could cause problems later on.

* The Offer of Sale - l'offre de vente
An offer of sale may be withdrawn by the vendor at any time before it has been formally accepted. Therefore it does not leave the purchaser with any guarantees of the sale proceeding.

* The Offer of Purchase - l'offre d'achat
Vendor has accepted your offer.

Buying a property in France is a major purchasing decision. Just as you would consult a solicitor if you were buying a property in the UK, you should discuss your plans to buy a French property with a Notary or a UK solicitor who is fully conversant with the French legal system. If this is the case, please ask and we will be able to put you in touch with a suitable proficient UK solicitor.

The Bilateral Sale Agreement - Le Compromis de Vente

The compromis de vente is the most commonly used from of conditional contract in France and it is the type we would recommend that you choose. It is a reciprocal agreement and once signed, both vendor and purchaser are immediately and irrevocably committed to proceeding with the sale. The main clauses contained within the compromis de vente are:

* identification of the parties to the contract (who is selling/who is buying)
* description and definition of the property (what are they buying)
* the price and method of payment (how will they finance the purchase)
* an outline of the vendor's title to the property (proof that the vendor has the right to sell)
* the completion date (when will they complete the sale)
* the deposit being paid (how much deposit is being put down)

If a loan is required then the compromis de vente will include a condition suspensive, of obtaining the loan. If your loan application is refused, then the compromis de vente will be considered null and void and you will be able to reclaim your deposit, as long as you can justify that you loan application was reasonable.
The most common types of conditions suspensives are:

* approval of outline planning permission
* a satisfactory town and country planning search
* a satisfactory survey of the property
* confirmation of a tenant vacating the property
* confirmation that the vendor's mortgages do not exceed the purchase price
* confirmation that the vendor's mortgages will be repaid from the sale proceeds.

The vendor may choose whether to accept the conditions you include in the contract or not. If he feels that the conditions are too onerous or may delay the eventual sale then he may refuse to sign the contract with those conditions. The Estate Agent is usually responsible for negotiating between the parties to ensure that the contract is accepted by both parties, unlike the situation in the UK where it would usually be the solicitor who negotiates the contract.

Assuming that all the conditions suspensives are met, then the purchase will proceed as laid out in the compromis de vente. If however, at this point one of the parties wishes to withdraw from the agreement then the way in which the deposit has been described will be vitally important. If it has been referred to as dedit then the purchaser may withdraw subject to forfeiting the deposit. The vendor may also withdraw subject to paying an amount equal to double the deposit paid to the purchasers by way of compensation.
If the deposit has been defined as acompte, neither the purchaser nor the vendor may withdraw from the agreement and the sale may be legally enforced.

The Deed of Sale - Completion - Acte de Vente

The acte de vente is drawn up by the Notary and is usually, therefore, a more formal document than the initial, conditional contract. There is usually an interval of 2 - 3 months between the signing of a conditional contract and completion of the sale. This is to allow the Notary time to draw up the deed of sale and make the necessary searches. The Notary will also arrange for SAFER to relinquish any right to purchase the property. The purchaser uses this interval to commission a survey (or builders quotations), organize a mortgage and seek planning permission if any of these things are appropriate to the purchase.

The proposed date of completion is always specified in the conditional contract, but can be subject to delays and revision (unless, of course, a suspensive clause has been added to fix a particular day).
By the date of the acte de vente, the purchaser must have already paid the balance of the purchase price to the Notary, together with fees, the taxes due, and all other fees relating to the purchase and mortgage.

It may be inconvenient for a British buyer to attend the signing of the acte de vente, particularly as the date may change several times! If this is the case then the buyer can give a power of attorney - procuration to a member of the Notary's staff, or any other nominated person, who may sign the deed on behalf of the purchasers.

Completion itself is a rather long-winded affair. The deed of sale will be read aloud by the Notary. Once it has been signed by all parties it can be a perfect excuse for a bottle (or two) of wine or champagne!