A 'sale subject to contract' is unknown in France, property contracts contain
clause suspensives. Sometimes known as 'umbrella clauses', these are agreed by
both parties and set out the circumstances under which the contract can be
broken without penalty. These could make the sale dependent on, for example,
the property proving free of planning restrictions, easements (rights of way or
access for adjoining properties), covenants, pre-emptive rights of purchase or
claims from local or national government. If works such as the addition of a
water supply or septic tank are needed to make the property habitable, the
practicability and cost of such schemes should be the subject of a condition
suspensive. In practice, anything agreed between the buyer and seller can be
included. Nothing so vague as 'subject to satisfactory survey ' is acceptable,
but if you are worried about a particular aspect of the building (say the
condition of the roof timbers), a survey of this can be made the subject of a
condition suspensive - if the vendor agrees. Conditions suspensives are also
included to make the sale dependent on the property receiving a clean bill of
health from lead, asbestos or termite infestation. These surveys, compulsory in
some parts of France, are the seller's responsibility. The period of up 12
weeks between signing the compromis de vente and the final sale (Acte de Vente)
will provide time to check out the various questions raised in the clauses
suspensives.
Subject to finance
If you are applying for a mortgage, a clause suspensive should make the
contract subject to finance being granted. You will, however, have to apply for
a loan and fail to secure it within a specified period to have the benefit of
this clause.
Compromis de vente: What are you signing?
Signing the contract binds both parties to the sale.
After 7 days the buyer lodges a deposit with the notaire or estate agent. No
interest is payable on this amount. The buyer will lose this deposit if they
withdraw from the sale for any reason not covered by the clauses suspensives in
the contract. If vendors cancel a sale with no valid reason they must return
the purchaser's deposit, and may have to pay a similar amount on top of that in
compensation (depending on the contract). Penalties for non-completion, and
what triggers them, should always be detailed in the contract. Signing such a
contract without taking legal advice on its contents can prove expensive.