Can buyers claim interest on their French security deposit?

Reader question: What happens to the money requested by the notary before the purchase? Is it safe and who gets the benefit?

One of the notary’s obligations is to provide the seller with the agreed sale price at once Real work It was signed.

They can receive money from the buyer and keep it in something like an escrow account (full continuity) at their local bank.

This is usually a security of 5% to 10% of the sale price agreement to sell.

long sale

If the sale takes place after three months, the money is transferred to the notary Mandatory deposit account With the government agency Caisse des dépôts et consignations.

This is among the most protected accounts in France.

The interest is usually low, but it goes to the buyer.

interest and security

continuation of the series In the event of a bankruptcy, only 100,000 euros. If the notary becomes insolvent, the money can be recovered from the liquidators.

Interest on these accounts can go to the notary or the purchaser depending on the contract.

It should be noted that for high-value assets and transactions where delays are expected, you will need interest, even if the notary fee increases.

It must be sent by the notary “within a reasonable time” after ensuring that all legal formalities and registrations relating to the sale have been carried out – generally four to six months.

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