Can anyone offer some advice?
My brother has bought a restaurant in France with a partner. They thought everything was fine and the contracts were signed, money paid and keys handed over about a month ago.
Their solicitor has just contacted them to say that the estate agent is holding on to the money (in fact it looks like he has spent it!). I understand it is the practice in France for the money to be held by the solicitor for 3 months after everything has gone through, to make sure all bills etc are paid for. The solicitor has adviced them that they should issue a writ for the money and also pursue damages.
What I don't understand is if they have the signed contract and receipt for the money paid, why this is their problem. Can anyone shed any light?
Advice on legalities of purchasing a business in France
-
Alan Knighting
- Posts: 4120
- Joined: Mon Oct 18, 2004 7:26 am
- Location: Monflanquin, Lot-et-Garonne, France
Carole-Anne,
You probably will not like what I have to say but I think it needs saying. Actually, I don't quite understand your question.
Has your brother bought the property or is he in the process of buying the property? There is a very big difference you know.
Are you talking about a business partner or just someone he happens to be living with?
It is often the case that people are misguided enough to pay a deposit to an Immobilière (estate agent). It is legal but it is not the preferred option. If the Immobilière is a properly accredited person there are monetary guarantees, if he is not then there are no guarantees. Has your brother paid a deposit to a non-accredited person?
It is quite normal for all parties to attend completion of a purchase and for the full accounting of all money to be dealt with on completion. That includes the Immobilière who would account to the seller's Notaire (Solicitor) for any deposits he has received.
Of course your brother has rights but enforcing those rights is his problem. Nobody is going to indemnify him when things go wrong, why should they?
Alan
You probably will not like what I have to say but I think it needs saying. Actually, I don't quite understand your question.
Has your brother bought the property or is he in the process of buying the property? There is a very big difference you know.
Are you talking about a business partner or just someone he happens to be living with?
It is often the case that people are misguided enough to pay a deposit to an Immobilière (estate agent). It is legal but it is not the preferred option. If the Immobilière is a properly accredited person there are monetary guarantees, if he is not then there are no guarantees. Has your brother paid a deposit to a non-accredited person?
It is quite normal for all parties to attend completion of a purchase and for the full accounting of all money to be dealt with on completion. That includes the Immobilière who would account to the seller's Notaire (Solicitor) for any deposits he has received.
Of course your brother has rights but enforcing those rights is his problem. Nobody is going to indemnify him when things go wrong, why should they?
Alan
Thanks - I must admit, I wasn't completely clear about the situation myself, and you have raised questions that I asked too. Things have now moved on: The balance was paid to the estate agent in the presence of the notaire (and on the notaire's instructions) at the signing of the final contracts (the notaire was acting on behalf of both buyer and seller). The notaire went on holiday for a couple of weeks straight afterwards and didn't get the money from the agent before he left. In the meantime, the agent has spent the money!
The notaire is now acting free of charge to sort this out and a writ is being issued on Monday, freezing the agent's assets. On a positive note, the agent is apparently accredited and insured and so the money should be guaranteed - it's just going to take time. I believe the notaire also wants to have proceedings started to have him struck off.
The agent has also been in contact with my brother's business partner today and is arranging to make a payment towards the amount outstanding.
I must admit, the whole thing still sounds a little fishy to me - the notaire didn't let them know there was a problem for several weeks, and I can't help thinking he may have slipped up somewhere.
Anyway, many thanks for the information and for being frank (or fluffy!) - it's always better to understand the worst case scenario.
The notaire is now acting free of charge to sort this out and a writ is being issued on Monday, freezing the agent's assets. On a positive note, the agent is apparently accredited and insured and so the money should be guaranteed - it's just going to take time. I believe the notaire also wants to have proceedings started to have him struck off.
The agent has also been in contact with my brother's business partner today and is arranging to make a payment towards the amount outstanding.
I must admit, the whole thing still sounds a little fishy to me - the notaire didn't let them know there was a problem for several weeks, and I can't help thinking he may have slipped up somewhere.
Anyway, many thanks for the information and for being frank (or fluffy!) - it's always better to understand the worst case scenario.
-
Hells Bells
- Posts: 13173
- Joined: Sat Apr 30, 2005 8:42 am
- Location: French Alps
- Contact:
We have recently signed for our apartment and paid the money due on the property direct to the notaire, at no stage did the agent have any of our money. Even the initial 5% reservation deposit was paid by transfer to the notaire (although we did leave a sterling cheque with the agent which was returned uncashed once the deposit was received.
-
Alan Knighting
- Posts: 4120
- Joined: Mon Oct 18, 2004 7:26 am
- Location: Monflanquin, Lot-et-Garonne, France
Carole-Anne,
I am pleased to hear that things are being sorted out for your brother although it will take time.
When in a foreign country it is never safe to assume that things are done in the same way as in the UK or that the people involved are filling the same roles, they are not!
In France a Notaire is a public officer who is responsible for seeing that all requirements of French law are satisfied and that all taxes attached to the purchase are paid. In fact he represents the state and works on the state's behalf. Unlike a Solicitor in the UK, a Notaire is not appointed to represent the client's interests, he acts as an intermediary. As such he will not necessarily keep a client informed as a transaction progresses. The difference may seem subtle but it is crucial.
Alan
I am pleased to hear that things are being sorted out for your brother although it will take time.
When in a foreign country it is never safe to assume that things are done in the same way as in the UK or that the people involved are filling the same roles, they are not!
In France a Notaire is a public officer who is responsible for seeing that all requirements of French law are satisfied and that all taxes attached to the purchase are paid. In fact he represents the state and works on the state's behalf. Unlike a Solicitor in the UK, a Notaire is not appointed to represent the client's interests, he acts as an intermediary. As such he will not necessarily keep a client informed as a transaction progresses. The difference may seem subtle but it is crucial.
Alan