Real estate agents are men and women with on the ground experience and well established in their region or in their area. They are chosen partners for any buyer or seller because they are informed of daily transactions in their geographic area, and thus appreciate the value of a property and can determine a fair price. The purchase process requires certain precautions to be taken, before, during and after the purchase, particularly with regard to the drafting and signing of real estate sales contracts. The purchase process involves several compulsory stages. Drawing up a project, finding a property, finding a mortgage, drawing up a financing plan, drafting a deed of sale, finding a notary…
If you want to buy a property, a real estate agent can establish a true diagnosis of your wishes, from your budget, your selection criteria and your motivations, help find and present to you the suitable offers. In addition, he can advise you throughout the course of a real estate transaction and assist you in all your endeavors.
The stages of the purchase process : the contracts
The mandate of sale
First of all, the mandate of sale is a contract whereby the customer assigns the real estate agent, (with commission) to search for a buyer for the property he wants to sell: the real estate agent cannot intervene in a transaction if he does not hold this document which authorizes him to conduct all business activities such as displays, advertising, visits etc …
As part of its mandate, the real estate agent must implement all the means at their disposal to carry out its mission and satisfy both the seller and buyer.
The mandate should include several key phrases:
- the names and addresses of the concerned parties,
- the description of the property for sale,
- the amount of the commission due to the realtor,
- the party responsible for the payment of the commission, (buyer or seller)
- the period for which the mandate is granted
Sales agreement and the final contract
The sales agreement, “compromis de vente”, is a preliminary contract, a document in which buyer and seller agree to buy and sell a determined property for a specified price. It is a firm and final commitment of two parts: it determines the conditions of the purchase process and of the sale.
Important:
There is a legal clause stating that if the buyer does not get credit for the purchase of the specified property, then the sales agreement is void. (Other closing conditions “clause suspensives” may be included by the buyers at this phase.)
It is customary at the signing of the agreement that the buyer pays a deposit of about 5% to 10% of the purchase price, withheld at the notary, which is deducted from the sale price at the signing of the final sales contract.
The sales agreement includes a withdrawal period of 7 days for the benefit of the purchaser.
Average time before signing of the final contract: 2 to 3 months
The sales contract
The transfer of ownership is concluded that at the signing of the sales contract at the notary, when all conditions are met for the sale (obtaining the loan, planning documents …). At the signing of the contract, the purchaser pays the remainder of the amount due and the amount of legal fees (fees of the notary, registration fees and allowance for miscellaneous expenses of publication and registry). A copy of the title deed is sent to the buyer after completion of all formalities.
