Buying in France from abroad
Auction sales carry a sanction that has no equivalent in an ordinary transaction. It does not hit the one who bought badly, but the one who bought well and could not pay in time. This dossier says what it costs, why a buyer living abroad is more exposed, and how never to get there.
By Jean Mascla, founder of Home Select Updated · 6 min read
The property goes back to auction. The procedure is called réitération des enchères, long known as folle enchère, and it is triggered at the request of the enforcing creditor, a registered creditor or the debtor, once it is established that the buyer has not evidenced payment within the time allowed.
A fresh hearing is listed, on the basis of the same conditions of sale. The property goes again, and it goes without you.
Three things, and the third is the one nobody imagines.
They lose first the deposit handed over before the hearing, the one they believed would come back in any event.
They bear next the costs of putting the property back to auction, on top of those already incurred.
And above all, they remain liable for the shortfall if the property resells for less than their bid. That is the decisive point: liability does not end with the loss of the property. They bid a price, that price stands as the reference, and the gap stays on their account. Conversely, if the property resells for more, the surplus is not theirs.
Not because they are less serious, but because their payment chain is longer and none of its links speeds up.
There is no mortgage condition in a forced sale. The bid binds you without reservation. An agreement in principle obtained before the hearing is not a release of funds, and a lender that reconsiders its offer releases you from nothing.
Then come the currency exchange, interbank timings, compliance checks on a large incoming transfer, and sometimes a request for further documents at the least convenient moment. Each step is normal taken alone; it is their sum that overflows the deadline.
By treating financing as the first question in the file, not the last.
The funds must be available and in euros before the hearing, not raisable afterwards. That means the currency conversion is done or hedged, that the account which will receive the funds exists, and that your bank already knows a large transfer is coming and why. A bank that has been told does not block; a bank taken by surprise does, and is right to.
Where a loan is involved, the only useful question to put to the lender is the date on which it will actually release the money, with documents to back it, and not the date it thinks it can. The difference between those two answers is exactly the risk you carry.
Le Lavandou, Côte d’Azur
No, but you should understand what the event says and what it does not. A default tells you about one bidder’s cash, not about the quality of a property. Many re-auctions have a single cause: financing that did not follow.
That said, the property has meanwhile spent a few more months in whatever situation it was in. If an occupant was there, they probably still are, and the description has aged accordingly. Start the checks again from scratch rather than picking up the previous bidder’s conclusions: you do not know what they saw either.
Re-auction on default is the only sanction in the process that follows you beyond the property. Everything else stops at the hammer or at the loss of a sale; this one comes after you. It is also, for that reason, the best explanation of this subject’s most repeated rule: at auction you prepare the money before choosing the property, not the other way round.
Home Select searches and negotiates for the buyer, and for the buyer alone. Your property finder checks the property, the building’s documents and the calendar before you commit, and flags what deserves a question to the notaire or a clause in the offer.
Around the purchase, we introduce the partners used to buyers who live abroad: bilingual notaire, mortgage broker, lawyer, sworn translator. Each acts under their own responsibility; we keep the calendar, from the offer to the handing over of the keys.
Payment made before the new hearing ends the re-sale, but it does not wipe out the costs already incurred or the interest on late payment. In other words a delay can be made good, at a cost that rises daily. It is not a way out, it is an emergency exit.
No. There is no mortgage condition in a forced sale: the bid binds you unreservedly, and a lender that changes its mind releases you from nothing. It is the difference with a private purchase that carries the heaviest consequences, and the one buyers discover latest.
Not automatically. The new sale restarts on the basis of the conditions of sale, and a property that attracted several bidders will generally attract them again. The only thing the default tells you for certain is that one buyer could not raise the funds. It says nothing about the property.
The property goes back to auction. The procedure is called réitération des enchères, long known as folle enchère, and it is triggered at the request of the enforcing creditor, a registered creditor or the debtor, once it is established that the buyer has not evidenced payment within the time allowed.
Not because they are less serious, but because their payment chain is longer and none of its links speeds up. There is no mortgage condition in a forced sale. The bid binds you without reservation. An agreement in principle obtained before the hearing is not a release of funds, and a lender that reconsiders its offer releases you from nothing.
By treating financing as the first question in the file, not the last. The funds must be available and in euros before the hearing, not raisable afterwards. That means the currency conversion is done or hedged, that the account which will receive the funds exists, and that your bank already knows a large transfer is coming and why. A bank that has been told does not block; a bank taken by surprise does, and is right to.
No, but you should understand what the event says and what it does not. A default tells you about one bidder’s cash, not about the quality of a property. Many re-auctions have a single cause: financing that did not follow.
Further reading
Preparing a purchase in France from abroad, or already an owner there? Describe your situation: a Home Select property finder answers within one working day, and the file starts with the right partners, in the right order.
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