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French Estate Agents
Are immobiliers legally allowed to make up offers on properties that they are trying to sell? Thanks
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We're interested in a prop and have made an offer but someone had apparently already made an offer of full asking price and were in the process of trying to arrange finance. That sounds reasonable enough but the agent contradicted herself a few times in what she said about them and things didn't add up. She also said that she wants us to have the property over them.
Under French law an offer accepted is binding. There are financial penalties for the buyer, calculated on the offer price, if they renege on the offer, which is formal and signed or. They are, however, allowed to certify, at the time of signing, that they are arranging finance, in which event there is no penalty if the fance fails and they are obliged to withdraw on that account. There are penalties for the vendor who withdraws, too.
Now, it sounds as though the person has made an offer with that condition attached. The vendor, having accepted that offer, is currently bound by it. Naturally, the immobilier would be happier with your offer , you having no finance required, since it is definite and quick and he gets his commission more quickly.
Common sense dictates that there must be some kind of time limit, or other condition, imposed by law on these offers, otherwise everyone would be making them 'on spec' and with little or no hope of getting finance, and freezing the sales of property all over France. Without checking,but with long experience of having and, necessarily, buying and selling property in France, my guess is that, additionally to any time limit, the offeror is bound to state which lender(s) he has applied to, so as to show genuineness and give something that could be checked.
Lending on property in France is very strictly controlled. The customer and their spouse or partner have to produce clear evidence of income and all expenditures, so as to give a precise figure of net monies in hand, and the multiplier of that is then applied. Any mistake or generosity on the lender's part will count against them if the borrower is unable to keep up payments because of it.
Now, it sounds as though the person has made an offer with that condition attached. The vendor, having accepted that offer, is currently bound by it. Naturally, the immobilier would be happier with your offer , you having no finance required, since it is definite and quick and he gets his commission more quickly.
Common sense dictates that there must be some kind of time limit, or other condition, imposed by law on these offers, otherwise everyone would be making them 'on spec' and with little or no hope of getting finance, and freezing the sales of property all over France. Without checking,but with long experience of having and, necessarily, buying and selling property in France, my guess is that, additionally to any time limit, the offeror is bound to state which lender(s) he has applied to, so as to show genuineness and give something that could be checked.
Lending on property in France is very strictly controlled. The customer and their spouse or partner have to produce clear evidence of income and all expenditures, so as to give a precise figure of net monies in hand, and the multiplier of that is then applied. Any mistake or generosity on the lender's part will count against them if the borrower is unable to keep up payments because of it.
In what way was the immobilier contradicting herself, in the circumstances ? It seems most likely that she's as uncertain of details as French agents always are!They never seem to know where to find the file , even when its on the computer in front of them, and are quite often vague about progress on transactions. They usually end up shouting round the office because the last person who might know is never them.
In France you sign a 'compromis de vente' and then about three months later when all is ready (paperwork, loans etc) you sign the final papers. maybe this is what has happened here but I would have thought they would have mentioned it. She maybe knows they won't find the finance. As FredPuli43 says whoever pulls out after a compromis de vente is liable to pay fees.
Thanks very much for the detailed info, that has made things a little clearer. We last spoke to the immobilier on Friday morning, 2 days after we made the offer.
She said that an offer of full asking had been made but the people were trying to arrange finance and would know by 5pm that day. She went on to say that he knew about our position and would accept our offer (or close to it) if they are unable to proceed. But then she slipped up towards the end of the conversation by saying that she had not yet spoken to the vendor about us or our offer.
She said that an offer of full asking had been made but the people were trying to arrange finance and would know by 5pm that day. She went on to say that he knew about our position and would accept our offer (or close to it) if they are unable to proceed. But then she slipped up towards the end of the conversation by saying that she had not yet spoken to the vendor about us or our offer.
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