Friday, June 6, 2014

Apartment sale (2)

Further to my post of 30 May below, I am now in the process of selling my apartment under the new regulations required by the loi Duflot/ALUR , which requires the vendor provide a lot of additional information about the property, some of which was normally made available only at the signature of the acte finale (final document completing the sale) but which now has to be available to the potential buyer before he/she signs the compromis de vente (or pre-contract) and is asked to make a down payment on account, normally based on 10% of the sale price.

As noted below, the new procedures can delay the preparation and signature of the compromis de vente by, according to some estimates, 4 to 6 weeks - leaving the vendor in a position of uncertainty as to whether he has a genuine sale or not. As I wish to buy another property as soon as my present one is sold, it is difficult to agree any firm offers as my purchase will depend on my sale. Working closely with my agent and in cooperation with the buyer, we have taken the following steps which I would recommend to others involved in selling their apartment within  a co-ownership (copropriété) building:

1. I have confirmed with the syndic (building managers) that the charge they will make for supplying the documents required related to the history and management of the building - this will be made of a charge of €400 frais de mutation (change of ownership of the apartment) and an additional €250 for providint eh remaining documents.

2. I have signed and the buyer has countersigned a 'letter of intent to buy'  (lettre d'intention d'achat) which sets out the main terms and conditions that we are asking the notaire to include in the comromis de vente, including:
- Détails of the buyer and seller, description and address of the property
- Confirmation of the sale price including the agent's commission
- Confirmation that the buyer intends paying cash and is not seeking a bank loan or mortgage (this ensures that his cooling-off period (droit de réflexion) will be just seven days after signature of the compromis.
- Confirmation of the likely timescale for preparation and signature of the compromis and if all goes well, final completion.

This is very helpful for me as vendor and once the compromis is signed and a deposit lodged with the notaire, I am in a better position to start looking for another property and making a tentative offer using the above procedure. As my buyer does not wish to move in until early September, I am hoping to complete my purchase to coincide, thus avoiding the need to put my furniture in storage, and hopefully I will move directly from my old apartment to my new one. Fingers crossed!

I will post more information over the coming weeks as it happens.