Are you ready to sell or buy a property in France?
In France, there are statutory rules that protect the buyer when purchasing a home in France. Once the sale and purchase agreement (compromis de vente) has been signed, the law grants the buyer a ten-day period of reflection during which the buyer can withdraw from the contract without penalty.
Similarly, the buyer can still cancel the transaction if the sale and purchase agreement contains a conditional mortgage clause that cannot be met. The mortgage clause makes the final purchase dependent on the buyer obtaining a mortgage within a given time frame – typically 30-60 days – and under the conditions stipulated in the contract.
If the mortgage can not be obtained, the seller risks that the buyer withdraws from the agreement far into the selling process, which often takes 2-3 months from signing the purchase agreement to the final deed can be signed.
Therefore, it is an advantage to both the buyer and the seller that the financing is in place before the purchase agreement is signed (i.e. the agreement does not contain a mortgage clause). If the financing is secured beforehand, the buyer achieves a better negotiating position and the seller obtains assurance that the transaction can be completed.
Please contact us if you would like more information about buying and selling property in France.