What is the difference between a compromis de vente and a promesse de vente?

A compromis de vente is a mutual obligation of the buyer (to buy) and the seller (to sell). Literally translating as “a promise to sell,” the promesse de vente is a unilateral obligation to sell.

There are two substantial drawbacks to a compromis de vente:

• If the buyer chooses not to complete the purchase, he can be sued for specific performance. While ordinarily the seller will just take the good faith deposit and resell, the agent – who stands to lose their fee entirely – can and may sue to recover their commission.
• If the buyer ultimately decides to purchase through a company structure, or wants to add a co-purchaser, there is a risk that this substitution will be considered a second “sale” of the property subject to double the taxes.

 

Most importantly, the promesse de vente is drafted by your notaire, a legally trained authority on property transactions. Signing a compromis runs the risk of being poorly drafted and resulting in consequences the buyer (and/or seller) did not foresee. Our advice is always to sign a promesse if possible or, if not, to have a notaire review the compromis during the 7-day period of reflection, so that you can retract without consequences if need be.

People Also Ask

What is a compromis de vente?

• A compromis de vente is a bilateral preliminary sales agreement used in French real estate where both the buyer and seller commit to a transaction. It outlines the sale price, completion date, and “suspensive conditions” (like mortgage approval), legally binding both parties to the final deed of sale.

Can a buyer back out of a compromis de vente?

• Yes, but only under specific circumstances. After signing, the buyer has a mandatory 14-day “cooling-off” period (delai de rétractation) during which they can withdraw without penalty. After this period, they can only retract if a “suspensive condition” (e.g., failing to secure a mortgage) is not met. If they back out for any other reason, they typically forfeit their 10% deposit.

How much is the deposit for a compromis de vente?

• While not fixed by law, the standard deposit (dépôt de garantie) is usually 5% to 10% of the purchase price. This sum is held in escrow by the notaire or the estate agent. If the sale proceeds, this amount is deducted from the final balance due at the signing of the acte authentique.