In a climate marked by a surge in buying intentions, many properties find themselves swept up in a flood of transactions. A cascade of sales in which houses and apartments are passed from hand to hand... To ensure that the signing of compromises goes smoothly, it's in the interests of both buyers and sellers to ask the notary to take the helm!
Real estate isn't a smooth ride! More and more buyers find themselves embroiled in adventures where one seller buys from another, who then sells in order to buy back... Cascading sales that originate from the real estate tension felt in major conurbations. As demand generally outstrips supply, properties are quickly snapped up, while owners are tempted to buy a new home. A chain of transactions that runs smoothly, until a weak link comes along to stop it all! The notary ensures that every transaction is legally secure.
Offer to purchase
Which pre-contract to choose?
Few purchases are as binding as a property investment. That's why the decision to buy involves a preparatory phase, with the signature of a preliminary contract drawn up by the notary. In this document, seller and buyer agree on the terms and conditions of the transaction (property sold, price, loan amount, etc.), while leaving themselves time to verify its feasibility (search for financing, obtaining documents or information beforehand, etc.).
This preliminary contract can take the form of an offer to purchase, a unilateral promise to sell or a compromis de vente. Notaries recommend this last option to give the transaction the best chance of being completed. This is a deed in which both parties agree: the owner to sell and the buyer to buy. The sum of money paid at the time of signing - generally 5 to 10% of the price - constitutes a deposit on the sale price and cannot be returned to the buyer.It cannot be returned to the buyer, except in the event of conditions precedent not being fulfilled on time, particularly with regard to the loan.
Retraction period
How long do I have to make up my mind?
As with many purchases, the customer has a cooling-off period. This period is designed to allow customers to consolidate their decision. Turnarounds in the sale process can slow down the progress of a cascade sale.
In real estate, the buyer has a 10-day cooling-off period during which he can withdraw from the contract, without giving any reason.
To start the withdrawal period, the seller's notary sends a copy of the signed deed by registered letter with acknowledgement of receipt.
If the buyer has not withdrawn within 10 days, the pre-contract can take effect, depending on whether it is a promesse d'achat, a promesse unilatérale de vente or a compromis de vente. If the buyer withdraws, he/she recovers the amount deposited with a notary within 21 days.
Right of pre-emption
What are the conditions for selling?
If a property is located in a zone defined by a local authority (commune or intercommunalité) for urban development purposes, the owner is not free to sell to the buyer of his choice.
In this case, the local authority can exercise its right of pre-emption on property belonging to private individuals or legal entities, such as single-family homes, buildings or plots of land.
If the local authority has a right of pre-emption over the property, the owner must complete a declaration of intent to sell (DIA). Once the local authority has received the DIA, it can decide not to acquire the property, or to accept the sale under the conditions set by the selling owner.
In this case, the notary ensures that the procedure is carried out correctly.
Conditions precedent
What about financing?
A suspensive condition allows the future buyer to withdraw from the promesse de vente or compromis de vente if he does not obtain the requested mortgage. In this case, any down payments made to the vendor or real estate professional must be reimbursed in full.
In addition to this precaution, when drafting the preliminary contract, the notary must indicate the total amount of the loans requested by the buyer, their duration and the maximum interest rate accepted (excluding insurance). In addition, the notary may specify that the purchaser must submit his loan application within a certain timeframe, and inform the purchaser of the receipt of the loan offer, or refusal thereof, by a specified deadline.
Completing the transaction
What precautions should be taken?
The notary advises the buyer to make his purchase subject to the suspensive condition of the sale of the property he owns, even if a preliminary sales agreement has already been signed for the property.
Indeed, if no suspensive condition has been agreed, he will be obliged to buy the new property, even if the sale of the property he already owns has not been completed.
Breach of commitments
What are the means of recourse?
In rare cases, the purchaser may fail to meet his or her commitments. If the agreement has been formalized by the signing of a compromis de vente, legal action can be taken to enforce the sale, with the award of damages under the penalty clause. In the case of a promesse de vente, compulsory sale is impossible, but the immobilization indemnity must be paid in full by way of compensation. Ideally, however, you should try to negotiate amicably through your notary.
Death of a seller or buyer
What solution should be considered?
If nothing is stipulated in the preliminary contract, the heirs are obliged to purchase the property. Generally speaking, a clause stipulates that in the event of the buyer's death, the heirs can continue with the sale, or be released from their commitments, without compensation. In this case, the security deposit or immobilization indemnity is returned.
Christophe Raffaillac