Whether you are a seller or a buyer, this concept is not indifferent to you. Yes! The sales contract, or “bilateral promise of sale,” commits both of you to conclude the sale of a property according to the agreed price, payment conditions… A preliminary contract, therefore, which involves conditions, obligations, but also measures to be taken. Here to learn more…
A document with high legal value
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The signing of a compromise is equivalent to a sale and irrevocably binds both parties. Moreover, in the event that the owner or the buyer withdraws from the transaction, it is important to know that the court can compel them to proceed, potentially claiming damages. But don’t panic: the law also provides for suspensive clauses that allow for the cancellation of a commitment and the annulment of a transaction, but for specific reasons.
What can cancel a sales contract
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The withdrawal period If you are a buyer, and regardless of your reasons, you have seven days to reconsider your decision. All you need to do is inform the seller by registered letter with acknowledgment of receipt. The deposit you paid must then be refunded in full.
The suspensive clause for obtaining a loan Legally, for any real estate purchase, the Scrivener Law of July 13, 1979 provides for this suspensive clause in every compromise if the buyer is using external financing. In simple terms, if the loan is refused, the sale will be canceled. That’s why it is very important to specify in the compromise the amount of the proposed loan, the maximum accepted interest rates, the duration of the loan, and the amount of the contribution. Without these clarifications, it is impossible for the future buyer to invoke this suspensive clause, and nothing will prevent the owner from contesting the cancellation and taking legal action.
The mortgage suspensive clause of the state It provides information on whether the purchased property is subject to a mortgage. And this is important information, knowing that the mortgage is tied to a property and not to a person. In the worst-case scenario, if the former owner who acquired this mortgage becomes insolvent, it is against the new buyer that the mortgage registrar could take action. To avoid this trap, it is advisable to ask the current owner for a “statement” of the property in question.
The suspensive clause related to the planning certificate A sure and effective way to know if the land is buildable or if the parameters adjacent to the area and other easements impose constraints in case of work and expansion. Thus, no possible transaction without this certificate, available from the planning department of the municipality where the property in question is located.
Other things to know
Unlike the promise to sell, which is paid (around 125 euros) and must be registered with the tax authorities, the compromise does not require any fees. However, its signing is accompanied by a payment from the buyer to the seller, ranging from 5 to 10% of the sale price, a kind of security deposit that will of course be deducted at the signing of the notarial deed. Finally, one last point to remember: the compromise can be signed in the private sphere between individuals, in front of a notary, but also with the help of your agency.
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