Ange d’Azur accompanies you in your steps to buy a house or an apartment on the Côte d’Azur. She offers you a personalized approach, depending on the type of property you are looking for. One of the steps when buying real estate is paying a deposit. Here is everything you need to know about the payment of a deposit when signing the sales agreement.

What is an escrow?

When signing a sales agreement, the seller often requests the payment of a deposit also called « escrow » of the price of the property purchased. The purchaser must thus accompany his signature with the payment of a share of the total sale price of the property, and thus pay a deposit. The payment of a deposit is not a legal obligation, nor is the amount determined by law. On the other hand, it is customary for the seller to ask for an amount equivalent to 10% of the sale price, which is the rate applied in the vast majority of sales agreements. But this percentage is not an obligation. It can therefore be higher or lower, especially if the amount requested is too high for the buyer. In this case, the seller can agree to a lower amount, which is generally equal to 5% of the price of the property.

Is the payment of a deposit mandatory in order to be able to sign a sales agreement?

The payment of a deposit is in a way a custom between sellers and buyers. Indeed, the seller generally asks for a deposit to ensure the good faith of the buyer. It is therefore a guarantee of security. The payment of a deposit is not a legal obligation, contrary to what one may think. No law or text requires the purchaser to pay a certain amount when signing the sales agreement. Indeed, the deposit is paid in order to seal the agreement between the two parties. This agreement may mention that in the event of non-compliance with the compromise, the seller may keep the sum paid as damages. Therefore, the deposit is not just a reservation, it is a first payment for the purchase of the property. If the buyer cancels the sale for reasons that are not mentioned in the suspensive clauses, then the seller can keep the sum already paid. On the other hand, if the buyer cancels the sale during the 10-day withdrawal period, then he can recover this sum.

To facilitate your steps in drafting a sales agreement, do not hesitate to call on an expert. Ange d’Azur accompanies you throughout your steps to purchase a property on the Côte d’Azur.