Compromis and security payment process

After signing a compromis and depositing a security payment with the notary, buyers may encounter issues if the building permit for the property is refused. This raises questions about whether they can recover their funds.

Reclaiming the deposit

The ability to reclaim the deposit depends on the terms outlined in the compromis and the buyer's adherence to the agreed procedures. A suspensive condition tied to obtaining the building permit allows for the recovery of the deposit if the permit is denied, but this must be negotiated with the seller and clearly stated in the compromis.

Meeting deadlines and requirements

Buyers must submit a compliant dossier by the agreed deadline, as delays can result in the failure of the suspensive condition. If the buyer causes the condition to fail, it is considered fulfilled, allowing the seller to demand the sale.

Refund if no fault is found

If the permit is denied without fault on the buyer's part, the full deposit should be refunded. If the seller delays the refund, a formal notice should be sent, and legal action may be necessary if needed. The suspensive condition acts as a safety net, with the buyer typically paying a deposit of 5 to 10 percent of the property price.

Legal protections and conditions

For a property priced at 90,000 euros, this could amount to up to 9,000 euros held by the notary. To recover this amount, the compromis must include the suspensive condition for the building permit. Unlike conditions related to mortgage loans, this condition is not automatic and must be negotiated and written in full.

Legal consequences of permit denial

If the condition is properly included and the municipality denies the permit, Article 1304-6 of the Civil Code considers the commitment never to have existed, requiring the full refund of the deposit. If the buyer still wants the property, a new compromis can be signed with a revised project complying with urban planning rules.

Ensuring the condition is fulfilled

To ensure the suspensive condition protects the buyer, they must fulfill their part of the contract. The compromis usually sets a deadline for submitting the application and describes the expected project. Some agreements even require proof of submission, such as a receipt from the municipality.

Consequences of failing the condition

If the buyer causes the suspensive condition to fail, it is deemed fulfilled, meaning the sale can proceed as if the permit had been granted. Submitting the dossier too late or not matching the agreed project can result in the loss of the deposit. In 2021, the Court of Cassation ruled in favor of a seller when the buyer submitted a different permit application without the seller's agreement and outside the deadline.

Steps for refund disputes

If the seller is slow to return the money, a formal notice should be sent by registered letter with a return receipt. If the seller does not respond, a judicial conciliator can be contacted, as this is a mandatory step for disputes up to 5,000 euros before legal action. The final recourse is the judicial court, which can order the return of the funds.