Once you have agreed the purchase price, through Overseas Properties, there are various papers and authorisations, which will be required before entering into the formal sale agreement. The notaire will also be able to give you advice on whether to purchase using an S.C.I. A pre-sale contract can be either a "compromis de vente" or a "promesse de vente". These are explained below.

• Compromis de Vente
• Promesse de Vente
• Loi relative a la solidarite et au renouvellement urbain
• Le contrat de construction de maison individuelle
• Vente en l'etat futur d'achevement
• Projet d'acte (Draft of the final deed of sale)
• Acte authentique de vente (Deed of sale)

Compromis de Vente
As a first stage, property searches will have to be carried out, verification that the vendor has the right to sell the property, and if a property loan is to be included this must be granted before the final deed of sale, called the "Acte de vente", is agreed. In preparation for these searches and applications being carried out, the notaire will draft and prepare a "Compromis de vente" which is a preliminary sales agreement. 

There are several types of preliminary sales agreement and you must be clear which sort you are implementing:

A common type of preliminary sale agreement for a property purchase is the "Compromis de vente". It covers an existing property and commits both the vendor and the purchaser, having mutually agreed on the property and the purchase price. There is the opportunity with this type of preliminary agreement to incorporate "condition suspensive" (let-out clauses) to protect yourself.

Attention must be given to your "condition suspensive". There are three usual clauses:
(i) The purchaser cannot obtain a mortgage or property loan,
(ii) Exclusion (pre-emption) by the French Land Commission (SAFER),
(iii) An unsatisfactory "certificat d'urbanism", assessment of planning status of the property to be purchased.

There must also be an agreed date for completion. Generally completion can take place within 60 days after the "compromis de vente" is signed by both parties. However, often the completion date is extended by a further 30 days as it can sometimes take up to two months for the French Land Commission (SAFER) to respond to the notaire's request for the search.

In the event that this document (compromis de vente) is being prepared and you are not in France, you can ask your notaire to represent you by signing a Power of Attorney (mandat), that can be prepared in advance.

However, check very carefully that your name, address, the address of the property, etc. are correctly written. Also, do not be surprised that ALL your names will be included in the prepared documents: maiden name, and in the case of divorcees your ex-names, new name, marital status (single, married, divorced, widowed), profession, date and place of birth, your legal address and your nationality. Be prepared to provide evidence of all the above.

Upon signature of the preliminary agreement (compromis de vente), the purchaser must provide the deposit to the notaire, which is usually 10% of the purchase price. This payment can be made by bankers draft in Euro, but do discuss in advance with your notaire the method of payment.

FROM THIS POINT ON, YOU AS THE PURCHASER WILL FORFEIT YOUR DEPOSIT IF YOU INDICATE YOU SIMPLY DO NOT WANT TO PROCEED WITH THE PURCHASE OF THE PROPERTY. It is therefore very important that you are committed to the purchase, with the exception of the above let-out clauses (condition suspensive) or matters, which are deemed to be outside of the control of the purchaser. There is no turning back, without forfeiting your 10% deposit. [See below NEW LAW as of 1 June 2001.]

If on the other hand, the seller decides that he/she does not want to proceed, he/she must return the deposit to you, and may even have to pay you a charge.

The seller and the purchaser must now, within the period of time stated in this preliminary contract, enter into a formal deed, drawn up and executed by the notaire, to complete the purchase of the property.

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Promesse de Vente
This is another type of preliminary sale agreement and is similar to the "Compromis de vente" except that there are NO "condition suspensive" (let-out clauses). With this agreement the seller agrees to sell the property by a certain date, for a certain price and according to set conditions.

The buyer may be allowed a little more time to reflect on this decision, but as with the "compromis de vente", a deposit of 10% of the purchase price, or whatever is agreed, must still be paid when the "promesse de vente" is signed. This is the most common type of agreement in France, and the main advantage to a buyer is that the seller cannot withdraw their acceptance of your offer if all of the conditions in the agreement are met. The disadvantage to you as the buyer is that if you decide to withdraw you will lose your deposit.

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New law as of 1 June 2001  (Loi relative a la solidarite et au renouvellement urbain)
The notaire will be aware of this new law, which came into force on 1 June 2001. It is designed to protect private purchasers by giving them a period of seven days to "reflect" on their prospective purchase. This new law will give considerable flexibility to purchasers, rather than the "point of no return" on signature of the "promesse de vente" or "compromis de vente" and handing over of the 10% deposit, the purchaser now has an additional seven days in which to reconsider his/her offer.

If the decision is to withdraw from the purchase, the deposit is refunded. And from what has been published so far, if this refund is not respected, then a fine of c. €30,500 can be imposed by the appropriate authorities.

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Le contrat de construction de maison individuelle
If you are intending to build your own house and purchase a plot of land, which is possible in France, it is advisable to make serious enquiries to the French local authorities and building control departments to ensure you are able to obtain the relevant planning permission. What to you may seem the perfect location for the house of your dreams may be out of the question to the local planning department. 

The preliminary sale agreement "le contrat de construction de maison individuelle" will be signed with the vendor of the plot of land. A separate contract should be made with a carefully selected builder. If you are expecting to take out a property loan for this sort of purchase, these documents will be required to make a loan application to your lender.

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Vente en l'etat futur d'achevement
This type of preliminary sale agreement applies to properties which are in the process of being constructed, or not yet constructed. The agreement you will have prepared and signed is called the "Vente en l'Etat Futur d'Achevement" or "VEFA", and is literally the "Sale of property for future completion". It is the most common type of contract enabling you to purchase a non-completed property. Payments under this type of contract are made following a schedule of payments, usually linked to the progress of construction. These will be included in the "Contrat de réservation" (reservation contract), which will also list the price of the completed property and technical/building specifications.

The deposit payable under the VEFA agreement is usually 5% of the estimated purchase price for the property, which will then be deducted from the final price. The buyer will forfeit this deposit if he/she decides they simply do not want to proceed, except if the appropriate "condition suspensive" are inserted, as mentioned above.

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Projet d'acte (Draft of the final deed of sale)
Whichever option of the above you have opted for, once the notaire has all the necessary information, a draft (projet de l'acte) of the final deed of sale will be prepared for you. This document will be passed between the two notaires (if the vendor and purchaser have each appointed their own representative). A photocopy of this draft should be sent to you by your notaire for you to check before signing the final purchase agreement.

Do ensure that this contract includes ALL the clauses from the preliminary sale agreement, for example:

• Correct identification of both the vendor and the purchaser

• Identification in precise detail, of the property and the title of the property (origine de propriété)

• The date when you, as the owner, will definitely take possession of the property and be entitled to make full use of it (propriété de jouissance) whether to live in, renovate, decorate, or just lock up

• A town planning certificate (certificat d'urbanism), which should restate any town planning regulations relating to the property, and which have been unearthed by your notaire

• All guarantees and estimates (which should include anticipated works to the building, as instructed by the co-owners, the annual costs of maintaining the common parts, any outstanding bills for the above)

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Acte authentique de vente (Deed of sale)
The law in France stipulates that your notaire must ensure that all the legal work is complete, the required land searches have been carried out, your financing is in place and the necessary insurances are operating, before the "acte de vente" is signed. Evidence of these will be required prior to the final signature meeting.

You will be expected at this point to make several payments in Euro. Ask your notaire to provide you, well in advance, with the final breakdown/statement of the exact amounts. This should list at the very least: the deposit paid, the outstanding balance owed, what portion will be covered by your personal bank draft, what amount will be paid by a lender and the notaire's fees.

If you are not going to be present, then a power of attorney (mandat) must be prepared and in place, so your notaire can act on your behalf. Clarify with your notaire at the early stages of negotiation whether he will require notarisation by the French consulate of the power of attorney in the country where you are residing. If this is the case, you must be satisfied that the above figures are correct. The payment of the balance of 90% (or the portion which remains after the initial deposit), will be paid, usually by bank draft in Euro, payable to the notaire. (A bank draft in France can take a couple of days to prepare, so factor this time into your planned date for final signature). If a portion of this final payment is provided by a mortgage lender, this paperwork must be in order, and the lender's cheque in the notaire's possession.

However, do keep in mind that several things can go wrong at this point, and for peace of mind, check beforehand with your notaire that the various cheques are in hand and the insurance documents are correct, before agreeing to the signature of the final deed.

The meeting for the signature will be made as an appointment at an agreed place, usually the notaire's office. Expect the meeting to take several hours, and be prepared to have the final document read to you, word by word, in French.

Once the document has been read, and points discussed/explained in more detail, the notaires agree between themselves any other items, the cheques are then produced and handed over then keys are counted and handed over. The original deed of sale is signed by everyone, with every page being initialled by all parties. You are now the legal owner. Well done!

In line with French law, the notaire must retain the deed of sale of the property, but you as the purchaser are given a copy, known as "l'expédition". The deed is then registered at the "Bureau des Hypothéques" and no other person has any rights to this property, except you as the owner(s). As a final point, the relevant sections of the deed of sale are sent for registration at the French Land Registry.

Your notaire will send by post a copy of the final documents and a breakdown of the costs. Keep these safe. You will need to provide these documents when and if you decide to sell your property at some future date.

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