An important contract symbolising a commitment between buyer and seller to transfer a given property, at a given price, with or without specific conditions.

This can be a simple document clearly identifying the vendor, the buyer, the property, its price, an approximate completion date and signed by both parties.

In the case where a loan or mortgage is required – the law requires a specific clause stipulating that the purchase is subject to a loan and that if it is NOT obtained, the contract becomes null and void. The clause does, of course, impose a time delay and other specific obligations.

As a general rule, and to show commitment – the buyer pays a deposit of 10% of the purchase price upon signing the “compomis”.

After signing, the buyer (and only the buyer) disposes of a 7-day cooling off period should he wish to withdraw from the purchase.

A “compromis” outlines the financial penalties for which a vendor or buyer would be liable, should he withdraw from his commitments beyond the 7-day cooling off period.
The penalty consists of 10% of the purchase price PLUS the agency’s commission.

After signing the « compromis », allow approximately 2 months before completion which will secure the transfer of the property.

It is preferable to have a « compromis » drawn up by an estate agent or Notary in order to avoid any unpleasant surprises (rights of way, easements, problems relating to sewerage, buyers funding of the acquisition etc….).

Since November 1st 2007, a number of technical diagnostics must be supplied for properties that are sold or rented(similar to the « buyers pack » in the UK).
For all properties built before January 1st 1949 : a diagnostic for the detection of lead in paint, valid for 1 year for a sale (unlimited validity if there is no lead detected) and for 6 years for a rented property (as from August 12th 2008).
For all properties built before July 1st 1997: asbestos diagnostic.
For all properties more than 15 years old: gas diagnostic valid for 3 years.
For all joint-ownership properties: “Carrez” decree requiring exact surface measurements..
A report on drainage installations (whether septic tank or mains drainage) must be supplied and is carried out by the local authorities (obligatory as from January 1st 2013) – but systematically requested by Notaries for a sale.
For a sale or a rental: report on environmental and technological risks, valid for 6 months.
Energy performance report: valid for 10 years.
For termites, it is the local government for each French department that determines whether an inspection is obligatory (not yet obligatory in the « Manche »).
As from July 2008 – for all properties more than 15 years old – electrical installation report.

If the buyer discovers hidden vices in the 2 years following the purchase, he is entitled to cancel the sale or request a drop in the price.
For rentals, the landlord may be held responsible if he does not inform his tenants of the presence of lead in the painwork. And a lease agreement can be cancelled or the rent decreased if he fails to inform a tenant of any environmental or technological risks.

N.B : a vendor could be fined up to 1,500 Euros if he fails to supply the obligatory diagnostics and up to 7,500 Euros if he has company status.

Once price has been agreed on by both parties, we draw-up the "compromis" or preliminary contract. For this,we need to retrieve a number of documents from the vendor including his title deeds, and then prepare a thorough legal document. After signing this, the buyer has a 7-day withdrawal period and we can only submit the contract to the Notary once this 7-day period is up.

The Notary then sets about his conveyancing, which basically involves :
- verifying the full legal identity of the seller and buyer,
- checking the vendor's legal rights to sell the property and that there are no outstanding loans or mortgages on the property than cannot be covered by the selling price,
- identification of the property and it's cadastral references,
- contacting the local authorities to check that there are no planned restriction or developments that would prevent the buyer from putting the property to it's intended use,
- verifying rights of way, servitudes to neighbouring properties, details of lease where a property is sold with a tenant in place,
- addressing preemption issues.

A certificate of "free title" is obtained from the equivalent of the land registry (Conservation des Hypothèques) and a certificat d'urbanisme is obtained from the local authority which declares any administrative requirements or restrictions which apply to the property.

Once all the above has been verified, the "temporary deeds" are drawn-up and completion can take place. The final deeds are sent aproximately 6 months afterwards by the land-registry administrative office.

You will be liable for capital gains tax in France when you resale your property in the following cases:

• The property is a holiday home and not your main residence
• It is your main (and only) residence but you are NOT registered in the French tax system* or have not been in the French tax system for 2 years prior to selling.


You will NOT be liable:

• If you have owned the property for more than 15 years
• If the property is your main home and you are in the French tax system*, and have been for 2 years prior to selling.


In order to qualify as being in the French tax system, a tax return declaring your earnings (“Déclaration des Revenus”) must have been filed with the French tax authorities. Merely paying “taxe d’habitation” and “taxe foncière” does not qualify you as being in the French tax system.

Even if your earnings in France or anywhere else are “zero” – a tax return still has to be filed.