Real estate law in France

What is the basic procedure for purchasing a property?

Once the parties have agreed on the sale, two separate contracts are concluded. First, a preliminary contract is agreed. Here, basic details of the property are recorded and the buyer deposits 10% of the purchase price with the seller as security. This contract constitutes a mutually binding promise to fulfill the contract. If the buyer withdraws from the contract, the seller may keep the amount as a contractual penalty. If, on the other hand, the seller withdraws, he must pay the same amount to the buyer as a contractual penalty in addition to the amount received. This preliminary contract can also be notarized – which is recommended for a smooth process.

Secondly, the main contract is signed and notarized by the notary. This is when the transfer of ownership finally takes place.

What are the main differences when purchasing real estate?

In contrast to Germany, the notary is much more important. Lawyers in France only play a preparatory role when buying or selling real estate. Advice on costs and contract design is usually provided by the notary himself.

Another special feature, in contrast to Germany, is that the land register in France is merely a formality and is irrelevant for the actual transfer of ownership.

Att. Prof. (GTU / Georgien) Dr. phil. Stephan J. Lang