Everything you need to know about the deed of sale of a property

Have you found the property of your dreams? The next step is to finalize the sale by signing the acte authentique. This official document is drawn up by a notary, whose role is tomake the property sale official. It is mandatory for the transfer of ownership of the property to be valid, and secures the transaction for both parties.

Paradise Immobilier, your Collioure estate agency, explains everything you need to know about the deed of sale.

The deed of sale: definition

The deed of sale is a legal document drawn up and signed by a notary. It is the key document in a real estate transaction, as it certifies the transfer of ownership of the property from the seller to the buyer.

The different types of deed of sale

There are several examples of deeds of sale. Here are just a few examples:

• Compromis de vente: this is a promise to sell which commits the seller to sell the property and the buyer to buy it, subject to certain conditions. The compromis de vente can be drawn up in private or notarial form, but it is generally recommended to have it drawn up by a notary.
• Gifts/donations: the deed of gift is used to transfer ownership of a property to another person free of charge. It is often used for family donations.
• Rent receipt: a rent receipt is an authenticated deed attesting to the payment of rent by a tenant to his landlord. It can be useful in the event of a dispute between the two parties.
• Inheritance division: a deed of division is used to divide a deceased person's assets between his or her heirs. It is drawn up by a notary and must be signed by all heirs.

The difference between a deed of sale and a private deed

Unlike an authenticated deed, aprivate deed is drafted and signed solely by the parties to the sale, without the intervention of a public official.

The authentic deed of sale differs from the private deed in the following ways:

• Its probative value: in other words, the information it contains is presumed to be accurate and irrefutable until proven otherwise. In the event of a dispute, the party contesting the content of the document bears the burden of proof.

• Its enforceability: this means that it can be forcibly seized if one of the parties fails to meet its obligations.

It will be more difficult to contest an authentic deed than a private deed.

What does the deed of sale contain?

The real estate deed of sale includes a set of information essential to the transaction, in particular :

• Identity of seller and buyer
• Precise description of the property (location, surface area, features, etc.)
• Sales price
• Terms of sale (payment terms, deadlines, etc.)
• Mandatory real estate diagnostics
• Mortgage provisions (if applicable)
• Easements (if any)

The parties involved in the deed of sale

The main parties to the deed of sale are :

• The seller: this may be an individual, a company or an organization. The seller must provide precise information on the object of sale, guarantee that the property is in good condition and conforms to the descriptions, and respect the agreed conditions of sale.

• The buyer: he must ensure that he fully understands the terms of the sale, assess the value and condition of the property, and be prepared to meet his financial and contractual obligations.

• The notary: responsible for drawing up the deed of sale and ensuring that it complies with legal requirements. He advises the parties and ensures that their interests are protected.

Who draws up the deed of sale?

The notary is the public official responsible for drawing up and authenticating the deed of sale. Before drawing up the deed, he or she gathers all the important information: title deeds, property diagnoses, and information on the parties involved. He then draws up the deed, ensuring that all the necessary clauses are included. This includes details of the property, the conditions of sale, the price, and the terms of payment.

Once the deed has been drawn up, it is signed by the seller, the buyer and the notary. It is the signature that makes the deed authentic.

The stages involved in signing a deed of sale

1. Signing the sales agreement

Before signing the deed of sale, a compromis de vente is usually signed. This commits both parties to the sale and sets out the terms of the transaction. It is drawn up by a notary or a real estate agent.

2. Preparing the deed of sale

Once the compromis de vente has been signed, the notaire draws up the acte authentique. He also checks the legal status of the property and ensures that all legal conditions are met.

3. Signing the deed of sale

The deed of sale is signed at the notary's office. Both parties, the seller and the buyer, must be present or represented by a proxy. The notary reads the deed aloud and ensures that the parties understand all the clauses. He then answers any questions the parties may have.

4. Transfer of ownership

Once the parties have signed the deed of sale, the transfer of ownership becomes effective. The buyer becomes the new owner of the property. The notary then registers the new property in the land register and publishes the deed.

5. Handing over the keys

The handover of the keys usually takes place after the signing of the deed of sale. This is the buyer's opportunity to take possession of the property. The notary may be present at the handover to draw up an inventory of fixtures.

Why draw up an authenticated deed?

There are several advantages to drawing up a notarial deed:

• Probative value: an authentic deed is presumed to be genuine, i.e. its content is considered true until proven otherwise. This makes it easier to prove your rights in the event of a dispute.
• Legal certainty: the notary ensures the legality of the deed and the legal capacity of the parties. This limits the risk of the deed becoming null and void.
• Date certain: the authentic deed has a date certain, i.e. its creation date is indisputable. This can be important in the event of litigation to determine the order of claims or the prescription of rights.
• Land registry: authenticated real estate deeds are published in the real estate register. This protects the rights of third-party purchasers acting in good faith.
• Enforceability: the authentic instrument can be enforced by a bailiff without the need for a judge. This enables an obligation, such as the payment of a debt, to be enforced.

How much does a real estate deed cost?

Notary fees include several components:

• The notary's fees: these are the notary's remuneration. They are calculated on the basis of the sale price of the property, according to a scale set by decree.
• Taxes: these include value-added tax (VAT), property transfer tax (DMTO) and land registration tax (TPF). These taxes vary according to the type of property and its location.
• Disbursements: these are costs incurred by the notary on behalf of his client, such as land registry or mortgage fees.

On average, notary fees represent between 7% and 8% of the sale price of an old property, and between 2% and 3% for a new one.