The initial contract "Compromis de Vente" will describe the house or apartment that you are hoping to purchase. After signing this contract, the price of the property is fixed and cannot be altered. The deposit will then be taken from the bank account of the purchaser and either be transferred to a block account of the vendor or directly to the account of a certified lawyer, who must be certified by the French state. Deposits from a blocked account will be credited after the effective signature of the purchaser on the final contract.
If the buyer intends to take out a mortgage then it is necessary for this to be declared at the time of the agreement and a substantive clause in the "Compromis de Vente" protects the purchaser's interests in the event that a loan is not made available. In this event, the sale does not proceed and the deposit is returned. In the event of the discovery of a `planned nuisance' through the searches, the buyer can withdraw and the deposit is returned. Should, however, the buyer break the contract, the deposit is paid to the vendor as an indemnity - conversely, should the vendor break the contract, the deposit is returned to the purchaser.
