All you need to know when buying and financing real estate 
Banque Patrimoine & Immobilier boasts years of experience in real estate financing for non resident buyers. Our team of multi-lingual advisors is dedicated to making the whole process of buying a property in France as easy and uncomplicated for you as possible. While buying in France, you will commit to certain agreements that vary depending on the type of property you intend to purchase.
The buying process in France
Read more
Sales agreement vary depending on the property in question
1.Purchasing a completed property
"Compromis de Vente" (Preliminary bilateral agreement to sell/buy)
The Compromis de Vente is the most commonly used preliminary sales agreement when the property in question is completed. The buyer and seller commit themselves to the property and price by signing the Compromis de Vente. At this stage of the process, the buyer pays a deposit of 10% of the purchase price, which is secured in an escrow account with either the notary or real estate agent. This deposit is later deducted from the purchase price but it may be used as a penalty fee if the agreement is broken.
The deposit :
• If the buyer decides not to proceed. He/she forfeits his deposit.
• If any conditions in the Compromis de Vente are not met for reasons beyond the buyer’s control, then the deposit is refunded.
• If the seller decides to withdraw from the sale, the deposit is refunded and the seller may haveto pay a penalty fee to the buyer.
The sales agreement must include such information as :
• The method of payment.
• A description of the property.
• Information on town planning & rights of way.
• A date by which the Formal Deed of Sale will be executed.
To complete the purchase, both buyer and seller must enter into a Formal Deed of Sale. This is drawn up and executed by the notary within the period specified in the Compromis de Vente. Both buyer and seller are generally required to be present in the notary’s office on the day the sale is completed.
2. Acquisition of an off-plan property - «VEFA»
A VEFA contract is the most common agreement for the purchase of an unfinished home in France. Here funds are released in installments as construction progresses. Both parties must also sign a Reservation Contract ("Contrat de Réservation") which states:
• The price of the finished property.
• Technical specifications.
• The methods and dates of payments.
Under a Reservation Contract, the buyer usually pays a 5% deposit which is deducted from the overall purchase price inclusive of VAT. A Formal Deed of Sale – Acte Authentique - is then signed at the notary’s office. This document contains the binding agreement of both parties on the various terms of the reservation contract, and it transfers ownership of the home to the buyer regardless of its stage of construction.
Contract for the construction of a house - "Contrat de Construction de Maison Individuelle"
Should you wish to buy a plot of land and have a house built on it, we recommend that you contact the local authorities to obtain planning permission.
We also recommend that you have the preliminary sales agreement for the purchase of the land and a separate contract with your builder signed before applying for a loan.
"Compromis de Vente" (Preliminary bilateral agreement to sell/buy)
The Compromis de Vente is the most commonly used preliminary sales agreement when the property in question is completed. The buyer and seller commit themselves to the property and price by signing the Compromis de Vente. At this stage of the process, the buyer pays a deposit of 10% of the purchase price, which is secured in an escrow account with either the notary or real estate agent. This deposit is later deducted from the purchase price but it may be used as a penalty fee if the agreement is broken.
The deposit :
• If the buyer decides not to proceed. He/she forfeits his deposit.
• If any conditions in the Compromis de Vente are not met for reasons beyond the buyer’s control, then the deposit is refunded.
• If the seller decides to withdraw from the sale, the deposit is refunded and the seller may haveto pay a penalty fee to the buyer.
The sales agreement must include such information as :
• The method of payment.
• A description of the property.
• Information on town planning & rights of way.
• A date by which the Formal Deed of Sale will be executed.
To complete the purchase, both buyer and seller must enter into a Formal Deed of Sale. This is drawn up and executed by the notary within the period specified in the Compromis de Vente. Both buyer and seller are generally required to be present in the notary’s office on the day the sale is completed.
2. Acquisition of an off-plan property - «VEFA»
A VEFA contract is the most common agreement for the purchase of an unfinished home in France. Here funds are released in installments as construction progresses. Both parties must also sign a Reservation Contract ("Contrat de Réservation") which states:
• The price of the finished property.
• Technical specifications.
• The methods and dates of payments.
Under a Reservation Contract, the buyer usually pays a 5% deposit which is deducted from the overall purchase price inclusive of VAT. A Formal Deed of Sale – Acte Authentique - is then signed at the notary’s office. This document contains the binding agreement of both parties on the various terms of the reservation contract, and it transfers ownership of the home to the buyer regardless of its stage of construction.
Contract for the construction of a house - "Contrat de Construction de Maison Individuelle"
Should you wish to buy a plot of land and have a house built on it, we recommend that you contact the local authorities to obtain planning permission.
We also recommend that you have the preliminary sales agreement for the purchase of the land and a separate contract with your builder signed before applying for a loan.
Read more
The pre-qualifying process
Read more
The loan agreement process
Read more
