The real estate market is a fairly dynamic sector. Sales and purchases of real estate follow one another. For either reason, an individual may decide to sell their home. He expects to immediately return to possession of his funds as if it were a completely ordinary sale.
But in real estate, this is not quite the case. Before considering selling your property, you should know that payment is not made immediately. The real estate transaction requires certain formalities and the use of a key player: the notary. In this article, you will discover everything you need to know about the payment period for real estate sales.
The Notary: a key player in the real estate transaction
The notary is a public officer who intervenes in the establishment of certain acts, contracts and in certain transactions. The aim is to give them an authentic character. In the case of the sale of a building, the notary plays a key role. This role goes well beyond the drafting of the sales contract.
In real estate sales, the money from the sale is not directly given to the seller by the buyer. This is indeed contrary to what is usually done. In this case, the law obliges the notary to receive full payment for the sale of the building.
Thus, when it is the buyer who must pay the amount, he proceeds directly to the payment of the sum into the account of the Notary. Even if the purchaser benefits from a contribution, he must transfer the amount corresponding to the purchase price to the notary’s account.
The role of the notary is still crucial when it comes to a purchase that must be financed by a loan. In this case, it is up to the notary to make the basic appeal to the bank.
In all cases, the amount of the sale must be paid to the notary by bank transfer or by check. To this amount are added his fees. The payment must be made before the final signing of the sales contract. The notary in turn deducts his costs and transfers the sum corresponding to the sale to the seller within a given period. It is a process which allows to guarantee a certain security in the process of the sale.
The various formalities subsequent to the signing of the final act
For the sale to be effective, several formalities must be completed by the notary after the final signing of the contract, these are:
- Registration and publication of the sales contract
The deed of sale received by a notary must be registered with the tax service in return for a sum which is payable by the purchaser. It must also be subject to land publication with the land registration service. These various formalities make it possible to make the sale opposable to third parties.
- Payment of taxes on the building
It happens that the seller of the building is liable for certain taxes vis-à-vis the tax authorities. The notary must therefore proceed to the payment of these taxes before the transfer of ownership.
- The provision of the land registry offices, extracts from the deed of sale.
How long does it take for the notary to pay the money to the seller?
The sale of a building is not done as quickly as a purchase in a shopping center. This is justified by all the formalities that are necessary for the sale.
The duration of the formalities prior to the signing of the final contract.
Between the signing of the promise to sell and the signing of the final contract, several formalities must be completed by the notary as well as the parties.
- The notary must check if the building is not encumbered with mortgage
If necessary, he must inform the creditor of the sale of the immovable subject to mortgage and proceed, if possible, with the purging of the mortgage. This verification guarantees the security of the transaction for the benefit of the purchaser.
- The notary must also carry out checks against the title of the property and the identity of the seller.
- It must also purge the urban pre-emption right
This is for the notary to inform the municipality of the deed of transfer of the property. This is done by sending a declaration of intention to alienate. The municipality has a period of 2 months to decide whether or not to buy instead of the purchaser. The final contract can only be signed in the event of refusal by the authority or in the event of silence.
As for the purchaser, he also takes advantage of this period to seek a mortgage. In the event that he is not up to date for the payment, he takes the opportunity to regularize the situation. These formalities take between 2 to 3 months. It is an incompressible delay. However, the parties may for various reasons agree to extend it.
The duration of post-signature formalities
After signing, the procedure for registering and publishing the sales contract requires a certain period of time. It is indeed at the end of these formalities that the seller can be paid.
These formalities last between 2 to 21 days. Thus, the seller can receive the funds of the sale already after two days if it has been set up, a dematerialized processing. But otherwise the duration of payment of the sum can go up to 21 days.
The advantages of anticipating the purchase of a new home
If you sell your home for the purpose of acquiring another home, the 21-day period may be subject to change. In this case, you can ask to have your payment within a shorter period than the 21 days.
We recommend that you discuss the possibility of an immediate buy-back with your lawyer.
It can help you get a bridge loan for the purchase of the new home, pending the transfer of the amount from the sale of the old home. The notary can also intervene to shorten the payment period.