Client's Question: “We have been renting in Gers but are looking to buy a permanent home here. We have found our perfect property through a local agent and have been on a viewing with them to see it. However, since then we have heard through the grapevine that the vendors of the property are willing to sell it privately for a lower fee. How does the buying process work in terms of an agent having exclusivity over you once you’ve used their services? And would it ultimately be better for us to buy the property through an agent, rather than buy it privately, anyway?”
There are two aspects to consider here, the first is the legal obligation of both yourself and the vendor. When an agent accompanies you to view a property he will ask you to sign a ‘bon de visite’. This will contain his agency details, your details and the reference numbers of the properties you are to view. The ‘bon de visite’ states that you will not approach directly the vendors of any of the properties you are to view within a given period, usually 12 months following the date of the visit.
In order for the agent to present the property for sale, the vendor will have signed a mandate with the agent, which specifies such details as selling price, agency commission, the buildings and land that are to be included in the sale and the terms and conditions of the contract between vendor and agent. These will include a clause which states that during a specified period the vendor is not to deal directly with any client the agent has previously introduced. Should a sale be agreed either privately or through another agent or notaire, the vendor is obliged under the terms and conditions of the mandate to provide the agent with the name of the buyer and the details of the notaire who will be preparing the sale documents. Should the owners decide to proceed with you on a private sale basis, they will be in breach of their mandate, and the agent will be entitled to sue the vendors for his commission.
The second consideration is the value of the agent’s service. A good French agent will prepare the initial contract, the ‘compromis de vente’. He will guide you through the sale to completion, accompany you to the notaire’s office for signing, assist with the transfer of utilities as well as be a mine of information on local trades people, local facilities, schools etc. For a buyer with perhaps limited French, buying in an unfamiliar foreign system this support is invaluable. Whilst private sales are common amongst the French, it is a huge undertaking for anyone to negotiate their way through legal paperwork, particularly without the very highest level of expertise in the language.
After all, when you buy property in your own country, you ensure that you have all the advice that is available; buying abroad is no different.
Blog submitted by: Sharon at Cle France.
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