The Cost of a Compromis de Vente
28th February 2024
Is a fee payable on signing a preliminary sales agreement for a property?
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The Cost of a Compromis de Vente
28th February 2024
Is a fee payable on signing a preliminary sales agreement for a property?
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The signing of a compromis/promesse de vente is the first legal stage of purchasing a property in France.
Although it is sometimes referred to as a ‘avant contrat’ (preliminary contract) it contains all the elements of the sale in it.
The contract is legally binding on the parties, save for the 10-day cooling-off period granted to the buyer, any conditional clauses in it, and a satisfactory search by the notaire.
It can either be signed through an authorised estate agent, or a notaire. Indeed, the seller and purchaser can draw up their own contract (sous seing privé), without any third-party intervention, although the practice is understandably rare, more so in recent years with the accompanying documentation that is necessary. There is also the question of who should hold the deposit, even if one is to be provided.
Many contracts are signed through the seller's estate agent when no charge is payable. The parties merely convene at the offices of the agent using a standard form of contract.
However, as cheap, speedy and convenient as this may appear, it leaves the buyer without any independant legal advice. We consider the issue at greater length at Preparation and Signing of the Contract.
For that reason, wiser heads use a notaire, either sharing the same one, or each party appointing their own notaire.
Costs vary but in no case is it expensive. If a fee is charged, the costs are normally up to €300, payable by the buyer, although the parties can agree that the costs be shared, particularly if only one notaire has been appointed.
The notaire is legally obliged to advise you of any charge prior to commencing the process.
Some notaires will charge directly for the service, but many simply roll the costs into the final cost of preparation of the deed of sale, if it is to be the same notary, which would normally be the case.
The notaire may simply otherwise ask for a retainer, returned on signing the deed of sale, or a small sum to cover incidental costs.
However, many notaires do not charge for the signing of a compromis/promesse de vente, a practice that is more common in the countryside than in the town.
We would not, however, suggest you make this the principal factor in choosing a notaire.
There are substantial costs payable by the buyer on signing of the deed of sale, most of which are taxes, which you can read about at House Buying Fees and Taxes.
Advice
If you seek advice, you can contact our Property Clinic, and one of our advisors will get back to you.