It's hard to tell the difference between a promise to sell and a compromis de vente... Fortunately, at Deplanche Immobilier France, we can explain everything! When you want to buy or sell a property, it's common to sign a document formalising the agreement between the parties, but there are two types of document that can be used: the promise to sell and the compromis de vente. Although these two terms are often confused, it is important to be aware of the differences between them to avoid any confusion or misunderstanding. In this article, we'll look at the differences between the promesse de vente and the compromis de vente.
In a promesse de vente (also known as a "unilateral undertaking to sell"), the owner makes a commitment to the prospective buyer (known as the beneficiary) to sell the property at a specific price. This gives the buyer an exclusive "option" for a limited time (usually two to three months).
During this period, it is forbidden to abandon the sale or offer the property to another buyer. The prospective buyer has the benefit of the promise to decide whether or not to buy. An undeniable advantage! In return, they pay the seller a down payment, which is normally equal to 10 % of the sale price. If he decides to buy, this indemnity will be deducted from the sum to be paid. However, if they decide not to buy, or if they do not express their acceptance within the option period, the indemnity will be retained by the owner as compensation, unless one of the conditions precedent to the pre-contract is fulfilled, for example if you do not obtain your financing.
To be valid, the promise to sell must be registered with the tax authorities within 10 days of signature. In addition, if the agreement is for a period of more than 18 months, it must be drawn up in the form of a notarial deed. The registration fee, paid by the purchaser, is €125.
Often in a hurry to close the deal, buyers and sellers sometimes think that signing the preliminary agreement doesn't commit them to much. This is not true: despite its name, this preliminary agreement is a real "contract", which entails major obligations for both parties. It allows them to specify the conditions of the future sale and marks their agreement. Although it is not legally binding, this document is essential.
In the preliminary sales agreement (or "promesse synallagmatique de vente"), the seller and buyer both undertake to conclude the sale at a price agreed jointly. In legal terms, therefore, the preliminary sale agreement is equivalent to a sale. If one of the parties reneges on the transaction, the other may be forced to take legal action, and may also claim damages.
When you sign the compromis, you must also pay between 5 % and 10 % of the sale price. This is known as the deposit and will be deducted from the price when the notarial deed is signed. Unlike the promesse de vente, the compromis does not need to be registered with the tax authorities. This absence of fees is an advantage.
However, in the event of a dispute as to whether the conditions precedent have been fulfilled, the parties will remain bound by the preliminary sales agreement, unless there is an amicable agreement or a court ruling, whereas in the case of a unilateral undertaking to sell, the parties regain their freedom if the option is not exercised by the buyer.
