Conditions precedent are contractual clauses included in the preliminary sales agreement (compromis de vente) that make the completion of the transaction contingent on future, uncertain events. If a condition precedent is not fulfilled within the stipulated timeframe, the compromis becomes void and the buyer recovers the deposit. In 2026 in Paris, the most common conditions precedent are mortgage approval (present in over 90% of agreements), absence of municipal pre-emption, and absence of undeclared easements.
Conditions precedent are the buyer’s primary legal shield between signing the compromis and the final deed. Well drafted, they allow the buyer to withdraw without penalty if an essential element is missing. Poorly drafted or too vague, they can backfire by failing to provide the expected protection. As apartment hunters, we pay particular attention to their wording in every transaction.
Table of contents
- The principle of conditions precedent
- The mortgage condition precedent
- The pre-emption condition precedent
- Other common conditions precedent in Paris
- Drafting and negotiating conditions precedent
The principle of conditions precedent
Conditions precedent are governed by Articles 1304 to 1304-7 of the French Civil Code. They suspend the performance of the obligation until a future, uncertain event occurs. As long as the condition is not fulfilled, the sale is not final.
General mechanism
When all conditions precedent are fulfilled, the compromis takes full effect and the parties are bound to sign the final deed. If a condition is not fulfilled within the stipulated timeframe, the compromis is automatically void: the sale does not proceed, and the deposit is returned to the buyer.
The buyer’s good faith
A fundamental point: the buyer has an obligation to act in good faith to enable the fulfilment of conditions precedent. They cannot invoke a mortgage condition precedent if they never submitted a loan application. The seller can then prove bad faith and seek forced execution of the sale or damages.
The mortgage condition precedent
This is the most important and most frequently invoked condition precedent. Its technical content must be precise to effectively protect the buyer.
Parameters to specify
The clause must state the loan amount sought, meaning the exact amount the buyer wishes to borrow. The maximum loan term must be indicated: 15, 20, or 25 years. The maximum acceptable interest rate is essential: in 2026, a threshold of 3.5 to 4.0% over 20 years is realistic. The minimum number of institutions to approach is typically set at 2 or 3. And the fulfilment deadline, the date by which the loan offer must be obtained, is generally 45 to 60 days from signing the compromis.
Pitfalls to avoid
Imprecise drafting can neutralise the clause’s protection. If no maximum rate is stated, the bank could offer a loan at a very high rate that the buyer would be legally bound to accept. If the loan amount is too low relative to the price, the buyer risks obtaining the loan but being unable to fund the full transaction. If the deadline is too short (30 days), it may be insufficient to obtain a bank response, especially during busy periods.
What to do if the bank is late
If your bank has not yet responded as the deadline approaches, immediately request an amendment extending the compromis. An amendment extending the condition precedent by 15 to 30 days is common and rarely refused by the seller. Your property hunter can facilitate this negotiation and coordinate communication with the notary.
The pre-emption condition precedent
The urban pre-emption right (DPU) is a mechanism by which the public authority can substitute itself for the buyer to acquire the property at the price agreed in the compromis.
How it works in Paris
For every sale in Paris, the notary sends a Declaration of Intent to Sell (DIA) to the City of Paris. City hall has 2 months to exercise or waive its pre-emption right. In practice, this right is rarely exercised, in fewer than 1% of transactions in Paris, and mainly concerns entire buildings in urban development zones or strategic properties.
Impact on the timeline
The pre-emption condition precedent blocks the transaction timeline for 2 months. This is one of the reasons the period between compromis and final deed is 3 to 4 months in Paris. If city hall explicitly waives its right before the end of the 2 months, the process can be accelerated.
Other common conditions precedent in Paris
Beyond financing and pre-emption, other conditions precedent can be negotiated depending on the situation.
Planning permission condition precedent
For a property requiring major works, such as vertical extension, change of use, or building extension, the buyer can make the sale conditional on obtaining planning permission or a prior declaration of works. Processing times are 2 to 3 months for a prior declaration and 3 to 6 months for planning permission in Paris. The condition precedent must allow a deadline compatible with these administrative timescales. Our article on change of use for a property explores this topic in detail.
Property sale condition precedent
The buyer makes the purchase conditional on selling their current property. As discussed in our article on bridging loans, this clause weakens the buyer’s position in Paris and is often refused by sellers. It remains possible, however, and protects the buyer who cannot finance two properties simultaneously.
Condition precedent relating to property condition
Satisfactory diagnostic results, absence of termites or lead above regulatory thresholds, electrical installation compliance: these conditions are less common since diagnostics are generally provided before the compromis is signed. They are justified when a diagnostic could not be completed before signing, particularly for co-owned properties in older buildings in the 5th or 6th arrondissement.
Condition precedent for absence of easements
This clause protects the buyer against the discovery of undeclared easements that would significantly affect use of the property, such as rights of way, views, or utility easements. In Paris, centuries-old easements are common in historic buildings and justify this precaution.
Drafting and negotiating conditions precedent
Drafting conditions precedent is a technical exercise that shapes the outcome of the transaction. Here are the principles to follow.
Precision of terms
Each condition must be drafted with quantifiable parameters: amounts, durations, dates, thresholds. Vague wording like “obtaining financing under normal conditions” is a recipe for disputes. Prefer: “obtaining a loan of 500,000 euros over 20 years at a maximum nominal rate of 3.8%, from a minimum of 2 banking institutions, within 60 days.”
Realistic deadlines
In 2026, bank processing times in Paris are 2 to 4 weeks for an agreement in principle, 4 to 6 weeks for a formal loan offer, and 10 mandatory reflection days after receiving the offer. In total, allow a minimum of 45 to 60 days for the mortgage condition precedent. A 45-day deadline is tight but feasible; 60 days is more comfortable.
The art of negotiation
In a competitive market like Paris, the temptation is strong to reduce conditions precedent to make your offer more attractive. Our apartment hunters help find the right balance between offer competitiveness and buyer protection. Waiving the mortgage condition precedent when the loan is not guaranteed is a disproportionate risk. However, adjusting the deadline or the maximum rate may be enough to reassure the seller without exposing the buyer.
FAQ
What happens if the mortgage condition precedent is not fulfilled within the deadline?
If the buyer demonstrates serious financing efforts and the loan is refused before the deadline expires, the compromis is void and the deposit is returned in full. The buyer must produce at least one loan refusal letter. If no steps have been taken, the seller can challenge the buyer’s good faith.
Can you waive the mortgage condition precedent to strengthen your offer?
Yes, it is legally possible and it does happen in Paris for highly competitive properties. But it is risky: if financing falls through, the buyer loses the deposit (5 to 10% of the price) and may be sued for damages. This strategy is only advisable if you have virtually certain financing or available cash reserves.
Is the City of Paris pre-emption right automatic?
No, the urban pre-emption right (DPU) is not exercised systematically. The notary sends a Declaration of Intent to Sell (DIA) to city hall, which has 2 months to respond. In Paris, pre-emption is exercised in fewer than 1% of cases, mainly in urban development zones or for entire buildings.
Have a purchase project in Paris? Contact our apartment hunters to discuss it.
Frequently asked questions
What happens if the mortgage condition precedent is not fulfilled within the deadline?
If the buyer demonstrates serious financing efforts and the loan is refused before the deadline expires, the compromis is void and the deposit is returned in full. The buyer must produce at least one loan refusal letter. If no steps have been taken, the seller can challenge the buyer's good faith.
Can you waive the mortgage condition precedent to strengthen your offer?
Yes, it is legally possible and it does happen in Paris for highly competitive properties. But it is risky: if financing falls through, the buyer loses the deposit (5 to 10% of the price) and may be sued for damages. This strategy is only advisable if you have virtually certain financing or available cash reserves.
Is the City of Paris pre-emption right automatic?
No, the urban pre-emption right (DPU) is not exercised systematically. The notary sends a Declaration of Intent to Sell (DIA) to city hall, which has 2 months to respond. In Paris, pre-emption is exercised in fewer than 1% of cases, mainly in urban development zones or for entire buildings.
