Buying in France from abroad
A buyer living abroad wires a considerable sum to a practice they have never visited, and it is legitimate to want to know what becomes of that money. In France, it never passes between the parties: it is deposited with the Caisse des dépôts, in the notaire’s keeping, until everything has been checked.
By Jean Mascla, founder of Home Select Updated · 6 min read
At some point in the process, a buyer living abroad wires a considerable sum to a country where they sometimes have no ties at all, into the account of an office they have never visited. Wanting to know what becomes of that money is entirely reasonable.
Into an account that does not belong to the notaire. The funds that notarial offices hold for their clients are deposited with the Caisse des dépôts et consignations, a public institution, and they are tracked file by file.
The consequence is the one that matters: your money is never part of the firm’s own assets. It is therefore not exposed to the firm’s difficulties, and it cannot be mixed with its own funds. The notaire has custody, not ownership.
On top of that separation sits the profession’s collective guarantee, which covers the funds held by offices. Few foreign systems have an equivalent in this form, and it is worth explaining to buyers comparing it with the practice in their own country.
Because the French sale is built around a third party who represents neither side and who makes payment conditional on the transfer being real. The seller does not receive the price because you signed: they receive it because the notaire has verified that you did become the owner, and that nothing encumbers the property.
So you never have to trust the seller, nor they you. It is the mechanism, not the good faith of the people, that secures the exchange.
Clears whatever needs clearing. They check the charges registered against the property, have mortgages released where there are any, confirm pre-emption rights, settle the taxes and charges owed by the seller, and carry out the registration formalities.
Each of those checks can turn something up, which is exactly why they come before payment rather than after. A seller’s loan not properly discharged, an encroachment, a pre-emption exercised: all of them are dealt with while the money is still in escrow, and therefore recoverable.
Eygalières, Provence
After those checks, not on the day of signing. Reckon on a few days in a straightforward file, longer where the property carried charges to be lifted or where the building’s management is slow to produce its documents.
The gap surprises sellers most of all, and it explains last-minute tensions buyers do not always understand. It says nothing about the soundness of the sale: you have owned the property since signing, even if the seller’s account has not yet moved and even if your title deed will not arrive for months.
What becomes of the deposit depends on why. If a condition is not met, a properly evidenced mortgage refusal for instance, the funds come back to you. If you withdraw for a reason the contract does not provide for, the sum goes to the seller for having held the property off the market. If a dispute arises on the point, the notaire holds the funds until the parties agree or a decision settles it.
Which is why the drafting of the conditions deserves more attention than their mere existence. A mortgage condition drafted without the amount, the term or the maximum rate protects less well than it appears to. This is a point on which a notaire working for you earns their place, before the preliminary contract rather than after.
Two practical things, often discovered too late.
The funds must have reached the office’s account a few days before the deed, not on the morning itself. No office signs on the promise of a transfer, and international interbank timings do not compress. That puts the subject back where it belongs, which is preparing the currency transfer and having the money genuinely available.
And the transfer will be scrutinised. A bank watching a large sum leave for another country asks for supporting documents, and the office receiving it must document where it came from: the same subject as the source of funds, seen from the channel rather than from the file. Prepared in advance, it costs nothing. Discovered the day before, it moves a signing.
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.
No, and it is worth factoring in when the sum is large and the wait long. The funds are tied up for the duration of the procedure, with no return to the depositor. A six-month contract on an expensive property therefore carries an opportunity cost best worked out before committing.
An agency holding a financial guarantee may receive funds, but escrow with the notaire remains the most protective and most legible route for a foreign buyer. If in doubt, ask for the deposit to go to the notaire’s office: nobody can seriously object.
From a few days to several weeks, the time the post-deed checks and formalities take. That wait is perfectly normal and says nothing about the soundness of the sale. It mostly surprises sellers, and it explains certain last-minute tensions buyers do not always understand.
Into an account that does not belong to the notaire. The funds that notarial offices hold for their clients are deposited with the Caisse des dépôts et consignations, a public institution, and they are tracked file by file.
Because the French sale is built around a third party who represents neither side and who makes payment conditional on the transfer being real. The seller does not receive the price because you signed: they receive it because the notaire has verified that you did become the owner, and that nothing encumbers the property.
Clears whatever needs clearing. They check the charges registered against the property, have mortgages released where there are any, confirm pre-emption rights, settle the taxes and charges owed by the seller, and carry out the registration formalities.
After those checks, not on the day of signing. Reckon on a few days in a straightforward file, longer where the property carried charges to be lifted or where the building’s management is slow to produce its documents.
What becomes of the deposit depends on why. If a condition is not met, a properly evidenced mortgage refusal for instance, the funds come back to you. If you withdraw for a reason the contract does not provide for, the sum goes to the seller for having held the property off the market. If a dispute arises on the point, the notaire holds the funds until the parties agree or a decision settles it.
Further reading
From the Home Select magazine
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