What is the difference between a compromise and a promise to sell?

Unilateral promise to sell: definition

La Promise to sell engages the owner, named proponent, to sell his real estate to the purchaser, designated beneficiary, at a defined price and for a fixed period of time. This preliminary contract can be signed by a notary or under private signature. In the second case, registration with the tax service is mandatory, for €125. Thanks to the unilateral promise to sell, the buyer benefits from exclusivity, called the right of option.

What is a sales agreement?

Also called Synallagmatic promise of sale, the Sales agreement engages both parties, seller and purchaser. From a legal point of view, the signature of a Sales agreement implies completing the real estate transaction. In the field of real estate, it is said that the compromise “is worth selling”. Although it is possible to sign this preliminary contract under private signature, most sales agreements are subject to an appointment with the notary.

What do sales agreements and sales agreements have in common

Before talking about the differences between unilateral or synallagmatic promise of sale, let's look at their similarities.

Drafting the preliminary contract

The sales agreement and the promise to sell contain mandatory legal information. Whatever type of pre-contract you choose, it should mention:

• The detailed description of the property;
• The civil status of the seller and the purchaser;
• The selling price of the apartment or house;
• The method of financing real estate acquisition;
• Mandatory real estate diagnostics;
• suspensive clauses;
• The fees of real estate agent ;
• The legal withdrawal period of 10 days for the purchaser;
• The maximum date for signing the authentic act of sale.
• The suspensive conditions
• The promise to sell and the sales agreement may include suspensive clauses. These conditions protect the purchaser. They allow the cancellation of the sale by operation of law, without penalties for the buyer who recovers any amounts already paid. Very often, suspensive clauses concern the agreement of a real estate loan, the obtaining of a work permit, the existence of a right of pre-emption or the appearance of easements.

The withdrawal period for the purchaser

That you sign a promise to sell or a sales agreement, the legal withdrawal period granted to the purchaser is the same. It is fixed at 10 days.

Withdrawal impossible for the seller

Sign a unilateral promise to sell Or a Synallagmatic promise of sale engages the seller. He cannot offer his property to another purchaser or remove it from the sale. In the event of non-compliance with his obligation, the owner is exposed to the payment of damages, or even to the execution of a forced sale.

The differences between compromise and promise to sell

You know more about how the compromise and promise to sell. Now let's look at what sets them apart. The objective is to understand which type of pre-contract is the most advantageous according to your situation.

The consents of the seller and the purchaser

Synallagmatic means mutual obligation between the two parties. That's the main one Difference between a compromise and a promise to sell.

Sales agreement: commitment of the seller and the purchaser

When signing a Synallagmatic promise of sale, the level of commitment of the seller and the purchaser is the same. If one of the two does not comply with its obligations, the other may resort to legal proceedings to force the execution of the contract.

Sales promise: a two-step commitment

In theory, the unilateral promise to sell only engages the seller. The purchaser has the right of option. This means that he is free to buy the property or not. He can think carefully throughout the period of his real estate purchase option. There is therefore a discrepancy in the commitments of each party. In fact, the purchaser is not that free. In fact, he pays a fixed asset allowance that he cannot recover if he withdraws.

Security deposit versus fixed asset compensation

Although there is no legal obligation, the signing of a preliminary contract generally results in the payment of a sum of money from the purchaser. We are talking about a security deposit for a Wind compromisee. This is a fixed asset allowance for Promise to sell. The difference between the two? A question of semantics!

Promise to sell and fixed asset compensation

In return for reserving the property in his favor, the purchaser pays a fixed asset allowance, generally between 5 and 10% of the value of the home. Three scenarios may then arise.

The purchaser exercises the option and confirms the purchase of the apartment or house: the amount of the compensation is deducted from the final sale price.
A suspensive clause cancels the sale: the buyer gets back the sum paid.
The purchaser finally decides not to exercise the option: the seller keeps the funds received.

Sales agreement and security deposit

During the validation of a Sales agreement, it is customary to pay a sum of money to demonstrate the seriousness of your approach. It is a security deposit. Its amount is equivalent to that of a fixed asset allowance. The consequences of this transaction? These are exactly the same as those we have just mentioned above, in the case of a promise to sell.

Conclusion: the differences between compromise and promise to sell

Are you wondering how to choose between a sales agreement and a sales agreement? The answer is simple. In practice, these two preliminary contracts have few differences. The main distinction between a synallagmatic or unilateral promise to sell lies in the commitment of the purchaser. As a buyer, the compromise forces you to finalize your Buying real estate. On the other hand, the promise to sell gives you a right of option. We did say a right, not a duty.

Do not hesitate to contact Parlez-moi de Paris if you need support in your real estate project.

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