Buying real estate: signing the pre-sale contract

Choose your pre-sale contract carefully

You’ve really made up your mind, it's now time to make a first payment (never pay anything beforehand!) and sign a pre-sale contract. There are several types of pre-sale contract. The extent of your undertaking will differ accordingly. You should therefore be aware of the implications.

• "The offer to buy" commits the buyer. He/she cannot change his/her mind for the period set out in the contract unless he/she was careful to include suspensive clauses and one of these is not fulfilled. The seller however is not bound by this contract until he/she has signed it. He/she can moreover keep you waiting and never sign, without your being eligible for any compensation. Avoid this type of contract; it is too much to your disadvantage.
• The "unilateral undertaking to sell” binds the seller completely. This contract gives you a certain amount of time during which you can study the offer in return for the deposit of a certain amount of money called ‘indemnification for immobilisation’ (generally 5 to 10% of the sale price). During the time set out in the clause, the seller may not sell to anybody else. You however have a 7-day cooling-off period. After that, you can pull out of the sale but you’ll loose your deposit.
• The "sale and purchase agreement" binds both the seller and buyer definitively, subject to any non-fulfilment of suspensive conditions stipulated in the contract. This is the most common type of agreement as it has the advantage of protecting both parties. The seller or the buyer however can allow for possible withdrawal from the agreement by stipulating a penalty to be paid. Read clauses carefully and check the description of what you are buying. Once the official deed has been signed in front of the Notary, you cannot change the terms of the contract.

Include suspensive conditions

If your final decision to buy depends on a specific event occurring over which you have no control, have it mentioned in your pre-contract as a "suspensive condition". If this event does not occur within the allotted time, your undertaking will automatically be broken and you will recover any deposit you made. The failure to obtain a loan is a suspensive condition prescribed by law, but you can mention any other clause that corresponds to your personal situation: the sale of your previous home, obtaining a zoning certificate in your favour, confirmation of a professional move, etc.