The sale of a real estate property has become more and more complicated because of the evolution of the law, tax law and case-law involved. The time when the buyer had to be curious is over. Indeed, the courts assign the vendor a real obligation of information regarding the real estate property’s characteristic features and its eventual defaults.

 

In other words, it is highly recommended before putting the real estate property up for sale, that the vendor contacts his notaire in order to update the technical and legal documentation regarding the estate and prepare the preliminary sales and purchase agreement which has to be an exhaustive document, allowing perfect knowledge of the estate. This will avoid the buyer unpleasant surprises after the signature of the preliminary agreement. It will also allow the vendor to check the eventual real estate capital gains tax. Should there be any problems or doubt, a short note explaining them as well as the subsequent risks for the buyer and their consequences will have to be given to the potential buyers by the realtor.

 

If the real estate property is held by an entity which has its registered offices in a non cooperative state or territory or in a state which has not signed with France, a treaty with a clause of administrative assistance, a written study must be done before the preliminary agreement is signed, in order to analyse the legal and tax situation of the vendor and identify the economic beneficiary of the operation, after collection the pertinent documentation.