Buying a House in France: Deposit, Guarantee and Escrow Explained

When buying a house in France, a deposit is usually requested at the preliminary-contract stage, before the final notarial deed. English buyers often search for buying a house in france deposit because the sum is commonly 5% to 10% of the price and may leave a foreign bank account weeks before completion.

This guide explains how a deposit in France works on a resale purchase: the difference between a dépôt de garantie and an indemnité d'immobilisation, who should hold the money, when it is refunded after the 10-day cooling-off, and when the seller may keep it. The short rule: pay into professional escrow, never straight to the seller's personal account.

FrenchNotaires matches you free of charge with vetted bilingual notaires, typically within about 48 hours, in person or by video call. Review the payment clause before you sign and before you press send on an international transfer.

Key takeaways

• A buying a house in France deposit is normally 5% to 10% of the price, credited against the purchase price if the sale completes.

• Dépôt de garantie usually sits with a compromis de vente; indemnité d'immobilisation with a unilateral promise.

• Funds should sit in séquestre (escrow) with a notaire or a properly guaranteed agent, not with the seller.

• Valid withdrawal in the 10-day cooling-off generally means a full refund.

• After cooling-off, and once conditions are met, walking away without cause can cost you the deposit.

What is the French property deposit?

On a standard French resale, buyer and seller first sign a preliminary contract, then complete later with an acte authentique. At preliminary stage the buyer is asked for a sum that English speakers call a deposit. That is the heart of buying a house in france deposit queries.

French practice uses different labels depending on the contract type:

• Dépôt de garantie: common under a compromis de vente, where both parties are already mutually committed subject to conditions;

• Indemnité d'immobilisation: common under a promesse unilatérale de vente, compensating the seller for taking the house off the market during the buyer's option period.

If the sale completes, the payment is credited against the price. It is not an extra fee on top. Pay €20,000 on a €400,000 house and that €20,000 comes off the completion balance.

Deposit vs indemnité d'immobilisation

The wording in your draft matters, especially if you buy remotely or rely on a mortgage condition.

Term	Usually linked to	Basic function
Dépôt de garantie	Compromis de vente	Secures the buyer's commitment; credited to price on completion
Indemnité d'immobilisation	Promesse unilatérale de vente	Compensates the seller for reserving the property during the option window
Séquestre	Either structure	Escrow holding by a professional, often the notaire

Full preliminary-contract map: Compromis de Vente Explained in English.

How much deposit when buying a house in France?

In practice, a deposit when buying a house in France is often 5% to 10% of the purchase price. Service-public and notarial guidance frequently cite around 10% for a dépôt de garantie, while negotiated files commonly land anywhere in the 5-10% band.

For an ordinary short preliminary contract the percentage is usually negotiated, not hard-coded by a single statute. Sellers may want 10% as proof of seriousness. Buyers living abroad may ask for 5% where FX risk or transfer delays are real.

On a €350,000 house:

• 5% = €17,500;

• 10% = €35,000;

• a lower negotiated figure is sometimes accepted against strong proof of funds or firm mortgage evidence.

Exception: if a unilateral promise lasts more than 18 months, an indemnité d'immobilisation of at least 5% is required.

Before you transfer a deposit from abroad

Ask a bilingual notaire to confirm who holds the funds, the payment deadline and the exact refund triggers in your draft.

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Where the money must be held

Do not send a French property deposit directly to the seller. In a properly secured purchase, payment goes to a professional authorised to hold client funds: typically a notaire, or an estate agent with the required financial guarantee.

When the notaire holds the money, it sits blocked in escrow until completion or lawful release. Your preliminary contract should state:

• exact amount;

• payment deadline;

• account details / payment route;

• who holds the funds;

• when money is refunded or released to the seller.

Transferring a deposit from abroad

For foreign buyers, banking friction is as important as legal wording. International transfers can stall on compliance checks, FX conversion, bank holidays and anti-fraud controls.

• Request official payment instructions from the notaire's office only.

• Verify account details through a second trusted channel before sending.

• Allow extra days beyond what the agency WhatsApp group assumes.

• Keep transfer confirmations, FX slips and bank messages.

Cyber-fraud is real in cross-border property deals. A last-minute email changing IBAN details is a red flag until the office confirms by phone on a known number.

The 10-day withdrawal period and your deposit

A non-professional buyer of residential property benefits from a 10-day withdrawal period after notification of the preliminary contract (Article L271-1 of the Construction and Housing Code).

The clock usually starts the day after the first presentation of the registered letter notifying the signed agreement, or the day after valid hand delivery by an authorised professional. If you withdraw validly inside that window, you need no reason and the deposit should be returned.

Use those ten days to review diagnostics, mortgage feasibility, planning papers, co-ownership packs and any clause you do not fully understand in French.

Dedicated cooling-off guide: French Property Cooling-Off Period for Foreign Buyers.

When you get the money back

Missing the final deed date does not automatically forfeit your deposit. Recovery is usual where:

• you withdraw during the legal 10-day period on a qualifying residential purchase;

• a properly drafted mortgage condition fails after a compliant loan application;

• the seller cannot complete (for example cannot deliver clear title as agreed);

• another contractual condition is not satisfied;

• both parties sign a release ending the contract.

On statutory withdrawal, official guidance refers to restitution within a maximum of 21 days from the day after withdrawal. Other release timelines depend on the escrow holder and whether the parties agree.

When you may lose the deposit

Once cooling-off has expired and conditions are satisfied or waived, refusing to sign the final deed without a valid reason can let the seller claim the deposit as compensation.

Common risk scenarios:

• you simply change your mind after day 10;

• you fail to apply for a mortgage in the form and time required by the contract;

• you refuse a loan offer that meets the mortgage condition;

• you miss payment deadlines without agreement;

• you rely on a disclosed issue that was never made a condition.

If you dispute release, the notaire will not normally hand escrowed funds to the seller automatically. Deadlock can end in court. The cheaper path is a clear preliminary contract before signature.

Practical points for foreign buyers

1. Currency risk: sterling or dollar funds can shrink between offer and transfer.

2. Transfer time: international wires take longer than domestic French payments.

3. Verify bank details: confirm IBAN instructions with the notaire office.

4. Keep proof: archive every transfer and FX confirmation.

5. Align mortgage clauses: match the condition to your real borrowing plan.

6. Power of attorney: anyone signing for you must understand the payment duties. See Power of Attorney in France.

Buying without travelling: Buying French Property from Abroad Without Visiting.

How the notaire helps

The notaire is not only the person who signs the final deed. Before you commit a deposit, a bilingual notaire can check:

• whether the draft is a compromis or a unilateral promise;

• whether the deposit amount is commercially reasonable;

• which professional holds the funds;

• whether mortgage, planning or related-sale conditions are correctly drafted;

• whether mandatory annexes are complete;

• what happens if completion slips.

Wider journey: Buying Property in France as a Foreigner and Notaire Fees When Buying Property in France.

Pre-transfer checklist

Step	Action
1	Confirm compromis vs promesse and the correct deposit label.
2	Confirm amount, deadline and escrow holder in writing.
3	Verify payment instructions with the notaire office on a known channel.
4	Check that the 10-day cooling-off applies to you.
5	Align any mortgage condition with your real lender process.
6	Allow FX and international-transfer buffer before the payment deadline.

Frequently asked questions

Is the deposit an extra cost when buying a house in France?

No. If the sale completes, the deposit or immobilisation indemnity is normally credited against the purchase price at completion.

How much deposit do I pay when buying a house in France?

Often between 5% and 10% of the price, depending on negotiation and the contract type. Long unilateral promises over 18 months require at least 5% indemnité d'immobilisation.

Should I pay the deposit directly to the seller?

No. Pay a professional escrow holder such as a notaire or a properly guaranteed estate agent.

Can I get the deposit back during the 10-day withdrawal period?

Yes, for a qualifying residential purchase by a non-professional buyer who withdraws validly within the period.

What happens if my mortgage is refused?

If the mortgage condition was properly drafted and you complied with it, refusal of finance can end the contract and return the deposit.

Can the seller keep my deposit if I change my mind?

After the 10-day period and once conditions are satisfied, yes, the seller may claim the deposit if you refuse to complete without a valid reason.

What is the difference between dépôt de garantie and indemnité d'immobilisation?

A dépôt de garantie usually accompanies a compromis. An indemnité d'immobilisation usually accompanies a unilateral promise that reserves the property for the buyer.

Can a foreign buyer negotiate a lower deposit?

Sometimes, if the seller agrees, especially where you show strong proof of funds or financing.

Related guides

• Property & Real Estate | French Notaires

• Buying Property in France as a Foreigner

• Compromis de Vente Explained in English

• French Property Cooling-Off Period for Foreign Buyers

• French Property Diagnostics for Foreign Buyers

• French Mortgage for Non-Resident Buyers

• Buying French Property from Abroad Without Visiting

• Find a Notaire | French Notaires

Sources

• Service-public: promise and compromis for an existing home

• Notaires de France: deposit if the sale does not complete

• Chambre des Notaires de Paris: sums paid at preliminary contract stage

Check the deposit clause before you sign

Once the withdrawal period expires, a buying-a-house-in-France deposit can become a real financial commitment.

Match with an English-speaking notaire within 48 hours · Free matching · In person or video · e.g. Paris or Bordeaux