Advices
Buying / Selling Guide
The transfer of ownership of a property is always preceded by a period of time spent negotiating between the seller and the purchaser and the settlement of various terms.
This period may be longer or shorter and it can happen that there are several potential buyers. Therefore, both the seller and the buyer may wish that the conclusion of the future transaction is ensured.
The parties may have for this purpose recourse to several types of arrangements :
Memorandum of agreement or reservation :
It is a non-notarial written agreement, signed by both parties and which sets their wishes. It often gives rise to a first payment to a notary, pledge of good faith in the discussions.
The parties can not be legally forced to sell, respectively to buy, on the basis of such an agreement.
Promise of sale and purchase
It is a contract drawn up by a notary who commits the parties to conclude a deed of sale at a later date. It specifies all the conditions of the transfer (delay, price, etc …). Often, the commitment made is subject to the fulfillment of one or more conditions precedent (administrative authorizations or mortgage to obtain).
It is customary for the buyer to pay, at the time of signing, a deposit to the seller, often about 10% of the price of the good.
If one of the parties retracts, the judge can force him to respect his commitments.
Forward sale :
It is already a sales contract, but it concerns a transfer of ownership deferred in time, according to a term defined between the parties. Like the promise of sale, it is often subject to conditions precedent.
Some think it better than a promise, thinking it is less expensive. In fact, for an equivalent cost, it proves to be more rigid than a promise, which allows it to take into account events that have occurred in the meantime.
In any case, the details of the transaction should be examined in detail with the notary, so that the acts concluded take into account all the particularities of the case.
At your disposal to discuss and bring you valuable advice!
Ch.B