The acquisition of real estate involves several steps. A period of three months generally elapses from the sales agreement to the signing of the final deed. Although the time frame between the sales agreement and the deed of sale may seem long, it is necessary to secure and facilitate your new real estate acquisition. Let’s review the time frames of a real estate transaction.
What is the time frame between the sales agreement and the deed of sale?
The law has not established a specific time frame between the sales agreement and the deed of sale. It generally varies between 3 weeks and 3 months. Before understanding the reasons for this duration, it is important to know the various steps in a real estate sale:
- Real estate valuation: determining the property’s market value;
- Property listing: mandatory diagnostics, property enhancement work, document preparation, etc.;
- Property advertisement: details about the property for sale, including location, as in Paris property ads, for example;
- Property visits and negotiations;
- Signing a preliminary agreement: sales agreement or promise to sell;
- Signing the deed of sale: contract signing, payment of the price, handover of keys, and ownership transfer.
The sales agreement is a unilateral document obliging the seller to sell their property at a determined price. In this case, you are required to pay an immobilization indemnity of 10% of the property’s sale price.
The sales agreement is a reciprocal contract in which both you and the seller commit to completing the property sale. It outlines the conditions for completing the sale. It may be a notarized document or a private agreement signed by the parties, possibly with the assistance of a real estate agent. With a sales agreement template, you’ll know all the elements that must appear in the document.
What affects the real estate sale time frame?
The average time frame of 3 months between the sales agreement or promise and the signing of the final deed varies depending on the circumstances. Several factors can influence the duration, which can be longer if the situation is complex.
Withdrawal period
After signing the sales agreement, you have a 10-day withdrawal period. During this time, you can withdraw from the sale without cause or penalty. The seller must refund the full immobilization indemnity you paid at the time of the sales agreement or the promise to sell.
Preemption rights
After the sales agreement is signed, the notary verifies all necessary documents for the deed of sale: title deed, co-ownership documents, etc. They also check for any preemption rights on the property. For example, this applies when a property is rented and the tenant has the right of first refusal. Municipalities may also have an urban preemption right. The mayor has a maximum period of 2 months to exercise this right.
Suspensive conditions
Suspensive conditions are clauses that make the real estate purchase conditional upon the occurrence of a future, uncertain event. Examples include selling a previous property, obtaining a building permit, or securing a mortgage loan.
The time required to secure a loan for financing your purchase is a minimum of 30 days. In reality, it takes about 45 to 60 days to obtain funds. If you fail to secure a mortgage, you can cancel the transaction without penalty by providing two rejection letters from two different institutions.
How is the deed of sale signed?
Once all the steps of the sale are completed, it’s time for the signing of the final deed of sale. This takes place at the notary’s office, and the deed must include all essential information. This authentic document specifies your identity and that of the seller, the sale price, charges, and encumbrances on the property, etc. No withdrawal is possible from this point onward.
There is no legal time frame between the sales agreement and the deed of sale. The duration can be shorter or longer depending on each situation. However, it is possible to reduce the typical three-month period by consulting a real estate professional. With their in-depth knowledge of the field, they can help accelerate and secure the property purchase process.
