Navigating the intricacies of French property purchase offer and acceptance can feel like solving a puzzle in a foreign language. Don't worry ! This FAQ sheds light on 8 commonly asked questions about this pivotal stage in property transactions. Bonne lecture!
đ„1. Will My Purchase Offer Obligate the Seller?
No. According to French law, the purchase offer is a unilateral contract that only binds the buyer. It does not bind the seller in any way.
Upon receiving your offer, the seller can either refuse, negotiate or accept your offer within the deadline you will have indicated in your offer. I usually recommend 48 hours.
đ„2. Can the Seller Refuse an Offer at the Asking Price?
Yes, if the real estate agency receives multiple purchase offers, on the same day, at the asking price, the seller has the option to personally select the best profile. Sellers will usually prefer an offer to purchase without contingency ("sans condition suspensive") , or a purchase with contingency but with a significant personal contribution.
đ„3. Can the Seller Accept Multiple Offers?
No. Once the seller accepts your offer the seller does not have the right to accept another purchase offer. If the seller ultimately decides to opt for another offer, you can seek damages and compensation. Additionally, the seller will also need to pay damages and compensation to the real estate agent who was also affected by this refusal.
đ„4. Can the Seller Accept a Purchase Offer Above the Asking Price?
No. Under French law, no offer above the asking price is allowed. If you submit an offer at the asking price and the seller declines your offer to accept another offer above the asking price, this constitutes an illegal practice.
It is also forbidden to attempt to negotiate the price upwards if you have sent an offer at the asking price too late.
đ„5. Is the Seller authorized to Organize Visits after Accepting my Offer?
No. Once the seller accepts the purchase offer, the property should be taken off the market. In other words, the real estate agencies and/or the seller should no longer schedule visits with other potential buyers.
đ„6. Can the Seller Retract After Accepting my Offer?
No. There is a common misconception that the seller can always retract since it's the buyer who submitted an offer. Accepting the purchase offer compels the seller to proceed with the sale without the option to retract or accept other proposals, even if they are more advantageous.
đ„7. Can the Seller or Real Estate Agent Receive an Amount of Money with the Offer? No. Receiving any amount of money with the purchase offer is not permitted. In this specific case, the sale will not occur, whether the transaction involves an agency or not. Recently, I have been in a situation where the real estate agent asked for a down payment with my client's offer.
đ„8. Can I Change my Mind Once my Offer is Accepted?
Yes, and without penalty. Once your offer is accepted, you have the right to change your mind at any time before the signature of the Promesse de Vente up until the end of the "10-day cooling off period". The start of the cooling off period only begins on the day following the signing of the Promesse de Vente. This allows the buyer to reflect on the matter and anticipate the financial implications of the acquisition.
If you change your mind during that cooling off period, you will be refunded 100% of the deposit you will have transferred into the notaire's escrow account upon signing the Promesse de Vente. At this point the purchase process is terminated.
The seller doesnât benefit from this cooling-off-period; it only protects the buyer. You can change your mind for any reason and you do not have to justify it in order to receive a full refund of the deposit during this 10-day cooling off period.
Happy property hunting, and may your French real estate journey be as smooth as a buttery croissant! đ„đ«đ·
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