What is a promise to buy?|EDITO SELOGER LOGO_HEADER

BuyBlandine RochelleMar 09, 2019updated on Nov 11, 2019Share on

The promise to purchase is the first step in a real estate sale, since it is a commitment on the part of the buyer, who offers to buy the real estate from a seller for a price and according to determined terms.

The promise to purchase is a commitment to buy a home

The promise to purchase is the first step in the sale of a property. It is a written document, which mentions the conditions of acquisition of the property, and that the buyer writes to make an official proposal to the seller. Through the promise to purchase, the buyer therefore undertakes to buy the property from the seller, at a defined price. Note that the price offered by the buyer is not necessarily the one set by the seller. For example, if a seller has put a property up for sale at €200,000 and the buyer wishes to buy it for €180,000, he then formulates this in the promise to sell, and undertakes to buy the property if the seller accept the promise. On the other hand, the seller is not obliged to accept a promise to purchase whose proposed amount is lower than that which he has fixed. If the buyer offers to buy at the price set by the seller, the latter does not have the right to refuse the promise to purchase. The promise to purchase precedes the sales agreement, which is the second stage of the sale. It is at the time of the signing of the sales agreement that the buyer pays the seller a security deposit which seals their agreement and provides the seller with the assurance that the sale will take place.

What must the promise to purchase contain?

To be valid, the promise to purchase must contain certain mandatory statements and information:

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The promise to purchase must be made in writing, it has no legal value if it is only made orally.

The conditions precedent of the promise to purchase

Although the promise to purchase is the first stage of the sale, it nevertheless contains conditions precedent, in the same way as the sales agreement. Indeed, the buyer offers to acquire the property from the seller, provided that certain conditions are met. The promise to purchase therefore includes conditions precedent, the main one of which is generally obtaining the buyer's mortgage. If the latter does not obtain his mortgage, he will not be able to buy the property, and this must be mentioned both in the promise to purchase, but also later in the sales agreement. But the conditions precedent can be diverse and do not necessarily concern only the mortgage, it can also be the state of the electrical system, the presence of easements which could affect the use and ownership of the dwelling, the carrying out work before the sale takes place, etc. The suspensive conditions allow the buyer to cancel the sale if one of the situations he has mentioned occurs.

Withdrawal of the promise to purchase by the seller or the buyer

Once the promise to purchase has been formulated, the seller has the option of accepting or refusing it. If he refuses it, the process stops there, unless the buyer reformulates a promise to purchase under more advantageous conditions for the seller, which the latter is likely to accept. If the seller accepts, the withdrawal becomes more complicated. In any case for the seller, because the two parties are not equal in the face of withdrawal:

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Once the promise to purchase has been sent to the seller, its content can no longer be modified. So remember to ask the real estate agent to accompany you in its drafting.