France

Activities:

• domestic/international tax and estate planning
• drafting, translation and legalisation of power of attorneys and corporate documents
• immigration, work permits, and licenses
• negotiation and drafting of commercial or residential leases

Real estate in France is home to stunning architecture and historical sites. It’s one of the most visited countries in Western Europe. The mass appeal of France real estate comes from the diverse regions of bustling cities and quaint towns there. Each offers a glimpse of the many personalities of France. Paris, known for romantic charm, has lively streets and tourist attractions. The Eiffel Tower, the Louvre and the Notre Dame there get major attention year round. Regions like Franche-Comté and Poitou-Charentes offer outdoor appeal with a lush countryside.

As global home prices continue to plunge, prices in France are growing at a steady pace.  This growth is possible because demand for homes in France remains strong. Unlike other countries, the French economy has not been affected by the housing crisis and the steady increase of France’s population is due in part to having the highest birth rates in Europe and a rise in immigration.

A preliminary sales agreement is a contract used to outline the transfer of real property in France from one party to another.  There are two main types of contract typically used, the Promesse de Vente and the Compromis de Vente.

The Promesse de Vente is a promise to sell the property to the buyer for a specific price within a specific timeframe. The timeframe is agreed upon by both parties and can be as long as four months.  Typically a deposit of 10% of the purchase price is paid by the buyer at the time of signing.  The buyer then has seven days in which he may change his mind and withdraw from the contract without penalty.  After the seven day cooling off period, the contract is legally binding and the purchaser must purchase the property within the option period or forfeit its deposit.

More commonly, the Compromis de Vente contract is used. While the Promesse de Vente is a promise to sell the property extended from the seller to the buyer, the Compromis de Vente is more of a compromise between parties and is often understood as being a sale and purchase agreement.  In a Compromis de Vente the buyer makes a commitment to purchase the property.  Like the Promesse de Vente, the Compromis de Vente often calls for a 10% deposit and allows for a seven day cooling off period.

Both the Compromis de Vente and the Promesse de Vente may contain additional agreed conditions and stipulations that govern the transaction.  The conditions, if not met, may invalidate the agreement and release the parties from their obligations.  Such conditions might include the buyer’s ability to obtain bank financing, adverse zoning easements, and local government exercising its pre-emptive right.

No matter which contract you use, it is not to be entered into lightly.  Consult your notaire and go over all the terms and conditions in detail before finalizing the agreement.