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The different kinds of promises to sell
Promise to sell
The compromise, also called bilateral (or synallagmatic) promise, if it is the best known, is not the only preparatory contract for the sale that exists. In some cases, it is possible to resort to the unilateral promise of sale. These two promises should not be confused.
The synallagmatic promise of sale, or compromise, commits the seller to sell and the buyer to buy, subject to various conditions precedent, such as obtaining a loan (Sheet 3: What is a compromise? ).
On the contrary, the unilateral promise to sell does not amount to a sale in its first phase: it opens up an option period for the buyer. The unilateral promise is signed by the seller (the promisor) and by the person interested in the purchase of the property (the beneficiary). It only binds the seller: only the latter is obliged to sell his property to the beneficiary, under specific conditions. The beneficiary only undertakes to indicate, within a specified period, whether he is purchasing the property or whether he is waiving such acquisition. Thus, initially, the parties agree to reserve the property and on the conditions under which the sale may take place.
In a second step, the beneficiary can "exercise the option" within the time limit, that is to say decide to buy the property. He can also renounce the sale: the seller is then released from the promise.
It is customary for the beneficiary to pay, at the time of signing, a sum of money called a capital allowance. If the beneficiary renounces the sale, the immobilization indemnity remains, in principle, acquired by the seller.
The synallagmatic promise of sale, or compromise, commits the seller to sell and the buyer to buy, subject to various conditions precedent, such as obtaining a loan (Sheet 3: What is a compromise? ).
On the contrary, the unilateral promise to sell does not amount to a sale in its first phase: it opens up an option period for the buyer. The unilateral promise is signed by the seller (the promisor) and by the person interested in the purchase of the property (the beneficiary). It only binds the seller: only the latter is obliged to sell his property to the beneficiary, under specific conditions. The beneficiary only undertakes to indicate, within a specified period, whether he is purchasing the property or whether he is waiving such acquisition. Thus, initially, the parties agree to reserve the property and on the conditions under which the sale may take place.
In a second step, the beneficiary can "exercise the option" within the time limit, that is to say decide to buy the property. He can also renounce the sale: the seller is then released from the promise.
It is customary for the beneficiary to pay, at the time of signing, a sum of money called a capital allowance. If the beneficiary renounces the sale, the immobilization indemnity remains, in principle, acquired by the seller.
Good to know
In the presence of a substitution clause, both parties may also proceed to a sub-agreement of sale in favour of a third party.
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