Purchase Procedures and Formalities
This form engages Languedoc Property Management Ltd. to search for a particular property for the client and/or show a property which has been notified as being for sale. The face of the form describes within certain parameters, the type and approximate size of the property required by the client, the purpose or use of the property, the possible purchase budget, whether finance is required or not, etc. This form will also note details of each property visited by the client together with some comments so as to enable us to better understand our clients wants and needs. The reverse side of the form provides the conditions of the Mandat and the duties of the Company. It must be noted that Languedoc Property Management Ltd. is not paid and does not accept any commission on the sale or purchase of a property. Languedoc Property Management Ltd. is paid a fee by the client when, and if, that client purchases a property through the company's services or through the introduction to the property or seller by Languedoc Property Management. Except where specifically authorised in writing, no fee is applicable if the client does not purchase a property. Important note : Real estate agents throughout the world have a legal responsibility only to the vendor. The legal statute of Languedoc Property Management specifies that we have a legal responsibility to both the vendor and the purchaser. For this reason we are legally allowed to represent the purchaser's interests, even when s/he buys a property through another real estate agent.
Offer to Purchase (Offre d'Achat)
This form, written in French and translated for the client, is the initial written offer of purchase made to the vendor. This is an important safeguard for the client which firstly, takes the property off the open market until such time as the Compromise de Vente is signed, and helps to prevent the possbility of "gazumping". Details on this form include : " the purchaser(s) full names, address, marital status, maiden name, place and date of birth, place " and date of marriage, nationality, etc. " the details of the property for which the offer is being made, including the cadastral section and " number, address, and superficial area of the property. " the net purchase price being offered to the vendor; " the amount of the 10% of the purchase price as a payment on account in good faith to stop the " sale of the property to another possible purchaser until such time as the Compromise de Vente " has been signed by the two parties; " Any "let-out" clauses or conditions which may apply to the purchase, such as : " the acceptance of the offer by the vendor by a certain date; " the granting of a loan by a bank or financial institution for the purchase of the property; " the sale of another property, the proceeds of which will finance the current purchase; " the granting of specified building permits; ....... etc. " the approximate dates of the signing of the Compromises (contracts) and Acte (title deeds); " the name and address of the vendor's notaire who will prepare the Compromise de Vente; " the name and address of the purchaser's Notaire who will prepare the Acte Authentique. Three copies of the Offer are signed by the purchaser. These must also be signed by the vendor, together with the words, "Bon pour accord, bon pour la vente .. Euros ...". One copy goes to the vendor's notaire, one to the purchaser's notaire, and the third stays with the client's dossier in the offices of Languedoc Property Management. It is normal to provide two cheques at the time of signing the Offer or very soon after. These cheques can be drawn on any bank and in any currency provided that the amount inscribed on one is not less than the required 10% amount in Euros at that day's currency exchange rate. The cheques can be later exchanged for cheques drawn on a French bank after a French account is opened. Cheque 1: A cheque for the 10% payment on account plus 230 Euros being a guarantee* for the Notaire. Cheque 2: A cheque for the mutually agreed fees due and payable to Languedoc Property Management Ltd. Cheque No. 1 is made out to the purchaser's notaire and can only be deposited into his trust account 7 days after the date of signing the Compromise de Vente. Cheque No. 2 is made out to Languedoc Property Management Ltd and is held in the client's dossier at the offices of Languedoc Property Management Ltd. until the day of the signing of the Acte Authentique. It is strictly illegal for this cheque to be banked prior to the signing of the Acte Authentique. * This guarantee for the Notaire is credited to his fees on the day of the signing of the Acte Authentique. Should the transaction be cancelled for any reason other than a clause suspensive (let-out clause), the guarantee of 230 Euros is forfeited to the Notaire.
Return to topCompromise de Vente (Initial Contract of Sale)
This document, usually 12 or 13 pages in length, is the basic contract of the purchase. The agreement is drawn up by the vendor's Notaire and is checked by both the purchaser's Notaire and Languedoc Property Management Ltd. to ensure that all protection is afforded to the two parties. The contract includes all details of the transaction including all "clauses suspensives" (let-out clauses). These include those already mentioned previously in the section Offer to Purchase plus a few more which will include: the receipt of a satisfactory report by an expert on xylophenic pests (wood destroying pests, particularly termites) and the reports for materials in the property which may contain lead or asbestos (these reports are at the vendor's cost), the resiliation of rights by the local Mairie to the first right of purchase, that there is no debt attached to the said property and if so, that the sale price will cover that debt in full, that the legal title searches do not show any right of passage or way, or any easement, or any other encroachment on or to the rights of the new owner that may not be acceptable, etc., etc. The Compromise de Vente is essentially a basic contract which also provides information on the Notaire's responsibilities for the protection of the two parties. This document is signed by both parties and the original is kept by the Notaire and a copy is provided to each of the two parties. On some occasions where it is not convenient for the purchaser to be present for the signing of the Compromise, a Procuration (Power of Attorney) may be signed giving power of attorney to a member of Languedoc Property Management, or another person delegated by the purchaser, to sign on his/her behalf. A form notifying the conditions of the 7 days of reflection is also given to the purchaser to sign. During this period the purchaser can retract from the transaction without loss of any monies paid on account. The 7 days starts from the day after the signing of the Compromise de Vente and the form is provided in English as well as French.
This is the most important document of the purchase and is prepared by the purchaser's Notaire. It is checked by the vendor's notaire and a representative of Languedoc Property Management. The Acte is signed by both parties and in front of both Notaires and Languedoc Property Management. The Acte is the transfer of the title deed which is then registered at the Bureau d'Hypotheque (Land Titles Office). Where the purchaser is not a native French speaker, Languedoc Property Management will commission an official translator to be present to ensure that all details of the Acte are fully understood by the purchaser. Although Languedoc Property Management staff are bi-lingual in French and English, we consider it ethically and morally correct to engage a totally independent translator who will provide an unbiased translation of the legal formalities. The fee for this service is 160 euros and is included in the Notaire's account. His fees also include all the land transfer taxes. The vendor notifies the purchaser of the amount of the Taxe Foncière (Land Tax) to be paid on the property for that current year (1 January to 31 December) and the purchaser is normally required to reimburse the vendor with the pro-rata amount of those taxes. Electricity and water meter readings are taken and it is the purchaser's responsibility to notify the Mairie of the village of the change of owner's name and the water meter reading, and to call the EDF to change the name of the electricity account and provide the meter reading for that service. This service is normally undertaken by Languedoc Property Management. The property is accepted with the the condition "AS IS" by the purchaser on that date. It is the responsibility under law for the purchaser to insure the property for all risks as from the time of the transfer of ownership. After researching for the policy providing the best value-for-money conditions, Languedoc Property Management normally organises this service also. Languedoc Property Management Ltd. fees as specified on the Mandat de Recherche are held in the transaction dossier until the day of completion. These fees are legally able to be banked by Languedoc Property Management after, but not before, the signing of the Acte Authentique. Special Note: It is extremely important to have a good understanding of the implications of certain clauses that may be included in the Acte Authentique, especially with regard to inheritance. Many English solicitors suggest that the Clause Tontine be included in the Acte. Depending upon the client's personal and individual circumstances, this clause could either be a benefit or be very detrimental to the purchaser's and/or his family's future security. A number of options are available such as Donation Entre Epoux or Contrat Universel and often it is legally advantageous to purchase the property using a small British registered Limited company. Languedoc Property Management can research sound advice on this important matter according to your individual needs. Please ask !