Rory Ramsden – Luxury French Property Finder & Buyer's Agent in south west France
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Does Gazumping Happen in France?

Losing a house purchase to a higher bid just before the signing of a legally binding contract is known as gazumping. The author explains that gazumping does not occur in France, but a similar practice is just as devastating. France allows a buyer to back out of a contract within 10 days after signing the compromis. French law allows a listing of the same property by multiple real estate agents. So, when the seller accepts an offer through one agent, the other agents do not receive a slice of the commission. The seller is however committed from the day he/she signs the preliminary sale agreement. The buyer, however, has 10 days to retract. It happens all the time.

Key Takeaways:

  • Buyers  can retract within 10 days of the signing of the compromis de vente
  • Things to know: Gazumping in France  does not happen if the sale is made through and agent and the seller has formally accepted an offer. That is not the case if a property is sold privately or ‘entre particuliers’ as it is called. Then a seller can accept a high offer.
  • The period after a verbal price agreement and before the initial sales contract is treacherous both for the buyer and the seller. You can avoid these potential pitfalls if you are well prepared and take advice from your own expert buyer’s agent who is on the ground and protects your interests throughout the search and acquisition.

“No surprise that the English adopted the satisfyingly resonant Yiddish expression ‘Gazumph’ to name the devastating experience of having your dream French property snatched away by another buyer offering a higher price before exchange of contracts – after already having invested money and time on the pre-purchase steps.”

http://thefrenchpropertyfinders.com/blog/does-gazumping-happen-in-france/

About the Author Rory

Rory Ramsden is a French property finder and buyer's agent working for high net worth private clients wishing to buy a chateau, manor or vineyard in the south west of France. He has lived in France for 8 years after spending time travelling the world on business.

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