So, you’ve finally found the house of your dreams and are about to sign a pre-sale contract.
An overview of the different choices you have.
The pre-sales contract blocks the property for the time it takes to take care of a certain number of formalities (obtaining a real estate loan, exercise or not of the pre-emption right by the Mayor’s office, performance of technical surveys, etc.)
There are several types of pre-sale contract. They can be concluded under private writing (that is, without a Notary) or signed in the presence of a Notary.
The sale and purchase agreement
This is the contract most often signed. Safe, it binds both parties who can bring legal proceedings against the other to enforce the sale. Also known as the Compromis or Promesse synallagmatique de vente, the sale and purchase agreement is a true contract that specifically provides all the information required for the sale. It is subject to conditions precedent.
The unilateral undertaking to sell
The seller agrees to definitively sell his/her property. The buyer confirms his/her commitment by paying an indemnification for immobilisation (from 5 to 10% of the sale price), but accepts the undertaking to sell as a promise and reserves the right to buy the property or not. However, if all conditions precedent are met, he/she will be penalised and the seller will keep the full amount of the indemnification for immobilisation.
The unilateral undertaking to buy
o-called purchase offer, this type of undertaking binds the buyer who can no longer change his/her mind unless the contract includes a suspensive clause that was not fulfilled.
On the other hand, as long as the seller has not signed the unilateral undertaking to buy, he/she is free to sell the property to someone else. Risky for the buyer, this contract contains a highest bidder risk.
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