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A few cautionary words
- Do not sign any document in French without knowing precisely the scope of your commitment
- Do not expect documents to be available in English
- Do not presume that it is a defence to claim that the document in French was not understood
- Do remember that even if you sign an extract or summary in English, it is usually solely the full
French version which will prevail
- Do not let yourself be talked into signing in haste because ‘you have 7 days’ to retract.
Compromis
It is observed that in the context of purchasing real property, the French word “Compromis” is often misused to include any initial commitment in regard to buying or selling real property in France.
However, a “Compromis” should generally be held to be one particular type of French legal agreement i.e. a bilateral legally binding document which commits the parties to completion of the purchase.
There are though other types of preliminary commitment with considerably different legal effects from the ‘Compromis’, for example:
- an “offre d’achat” or a “ promesse unilatérale d’achat” which are both unilaterally binding documents which commit the purchaser to buy the property but do not commit the vendor to sell
- or a “promesse unilatérale de vente” being a unilaterally binding document which commits the vendor to sell the property but do not commit the buyer to purchase it (rare!)
Moreover, it is our understanding that in many jurisdictions, such as England and Ireland (but not Scotland) such preliminary commitments are “subject to contract”; this is not the case in the France and the signed agreement generally binds the parties to complete the transaction.
That said, French law changed relatively recently and there is now a statutory seven (7) day cooling off period which is intended to protect the purchaser from the possible ramifications of a decision taken in haste.
However, if the purchaser is based in, say, Ireland or the United Kingdom then it is often a moot point as to whether or not the cooling off period might be eaten up simply by the time the postal services take to deliver the offer and to retransmit any letter of retraction.
It is of course possible to insert a number of contractual conditions into the ‘Compromis’ and one of the main conditions often encountered relates to the obtaining or otherwise of a bank loan, however care needs to be taken if the clause is not carefully drafted, as intermediaries who will only be paid if the purchase goes ahead will often be keen to provide a willing lending establishment, albeit at exorbitant rates of interest.
It would be more than unusual in France for a vendor to agree to making a ‘Compromis’ subject to planning permission for example and it is also rare for purchasers (understandably keen to move into their dream home) to make other than token comments at this stage.
However, it is vital to take proper advice prior to signing the ‘Compromis’ or any other preliminary document rather than waiting for the draft completion document (acte authentique) when it is usually too late to make other than very minor modifications.
Within the main content of the ‘Compromis’ preliminary document, you should be able to discern, as an absolute minimum, the
- identity of vendor
- identity of purchaser
- identity of property (land registry references, description etc)
- general and particular conditions of the acquisition
- latest date for completion (usually at least 8 to 12 weeks hence)
- contractual penalties for non-completion
Care should also be taken to ensure that a number of conditions which are of primary importance to you as the buyer have been included, such as
- “clause de substitution” - allowing the prospective purchaser to substitute another individual or body corporate at the completion stage
- acquisition subject to obtaining a Bank loan (name bank and set maximum interest rate)
- absence of asbestos - certification
- absence of lead (saturnisme) in the paintwork – certification
- absence of termites - certification
If you have a specific question prior to signing a ‘Compromis’ or similar agreement,
please click here 
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