French Property Deposit and Guarantee Payments for Foreign Buyers

29 juin
8 min de lecture

A French property deposit is often requested when you sign the preliminary contract, either a compromis de vente (bilateral sale agreement) or a promesse unilatérale de vente (unilateral promise to sell). For foreign buyers, this payment can feel risky because it is often 5% to 10% of the price and may be sent from abroad before the final deed is signed.

The good news is that the money should normally be held by a professional escrow holder, such as the notaire, and not paid directly to the seller. The less comfortable part is that the deposit can be lost if you withdraw late without a valid contractual reason.

This guide explains what the payment is called, where the money goes, when it is refunded and when the seller may be entitled to keep it. FrenchNotaires can match you with a bilingual notaire within 48 hours if you want a notaire to review the payment clause before you sign.

What is the French property deposit?

In a standard resale purchase, the buyer and seller often sign an initial contract before the final acte authentique (notarial deed). This preliminary contract fixes the price, property, parties, conditions and target completion timetable.

At this stage, the buyer is often asked to pay a sum as evidence of commitment. In everyday English, people call it a deposit. In French legal practice, the correct term depends on the type of preliminary contract:

Dépôt de garantie: commonly used in a compromis de vente, where both seller and buyer are committed subject to conditions.
Indemnité d'immobilisation: commonly used in a unilateral promise to sell, where the seller reserves the property for the buyer during an option period.

If the sale completes, the payment is normally deducted from the balance you pay at completion. It is not an extra cost. If you pay EUR 20,000 as a deposit on a EUR 400,000 purchase, that EUR 20,000 is credited against the price when the final deed is signed.

Deposit vs indemnité d'immobilisation

The difference matters because it reflects the legal structure of the preliminary agreement. The wording in your contract should be checked before you sign, especially if you are buying remotely or relying on a mortgage condition.

		French property payment terms at preliminary contract stage
Term	Usually linked to	Basic function
Dépôt de garantie	Compromis de vente	Secures the buyer's commitment and is credited against the price if the sale completes.
Indemnité d'immobilisation	Promesse unilatérale de vente	Compensates the seller for reserving the property for the buyer during the option period.
Séquestre	Either structure	Describes the escrow holding of funds by a professional, often the notaire.

For a full explanation of the preliminary agreement itself, read Compromis de Vente Explained in English.

How much is usually paid?

In practice, the amount is often between 5% and 10% of the purchase price. Service-public.fr and notarial guidance commonly describe 10% as a frequent figure for a dépôt de garantie, while notarial practice also refers to a 5% to 10% range depending on the agreement.

The amount is not always fixed by law for an ordinary short preliminary contract. It is negotiated between the parties and recorded in the document. A seller may ask for 10% to show seriousness; a buyer may request 5% where funds are abroad, exchange rates are moving, or bank transfer times are uncertain.

For a EUR 350,000 property, this can mean:

5% deposit: EUR 17,500;
10% deposit: EUR 35,000;
reduced negotiated deposit: sometimes possible if the seller accepts stronger proof of financing.

One important exception concerns long unilateral promises. If the unilateral promise lasts more than 18 months, an indemnité d'immobilisation of at least 5% is required.

Where should the money be held?

Do not transfer the deposit directly to the seller. In a properly secured French property transaction, the payment is normally made to a professional who is authorised to hold funds, such as a notaire or an estate agent with the appropriate financial guarantee.

When the notaire holds the funds, the money is blocked in escrow until the sale completes or the agreement ends. The preliminary contract should say:

the exact amount to be paid;
the deadline for payment;
the account details or payment route;
the person holding the money;
the circumstances in which the money is refunded or released to the seller.

For foreign buyers, the bank transfer route should be checked early. International transfers can be delayed by compliance checks, currency conversion, bank holidays and anti-fraud controls. Ask for official payment instructions directly from the notaire's office and verify them carefully before sending funds.

Before you transfer a deposit from abroad

Ask a bilingual notaire to confirm who holds the funds, what the deadline is and when the deposit is refundable.

Speak to a Notaire · Free matching · 48-hour response · In person or video

The 10-day withdrawal period

A non-professional buyer of residential property benefits from a 10-day withdrawal period after notification of the preliminary contract. This protection is set out in Article L271-1 of the French Construction and Housing Code.

In practice, the period 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 validly withdraw within the period, you do not have to justify your decision and the deposit should be returned.

This is especially important for foreign buyers because the 10-day period is the moment to review:

the diagnostics file;
mortgage feasibility;
planning and urbanism documents;
co-ownership documents if the property is in a copropriété;
translation of key clauses if you do not read French comfortably.

For a dedicated explanation of this right, see French Property Cooling-Off Period for Foreign Buyers.

When the buyer gets the money back

The deposit is not automatically lost just because the final deed is not signed. The contract and the reason for non-completion matter.

You may usually recover the deposit if:

you withdraw during the legal 10-day period for a qualifying residential purchase;
a condition precedent fails, such as a properly drafted mortgage condition where finance is refused;
the seller cannot complete, for example because they cannot deliver clear title as agreed;
a contractual condition is not satisfied, such as an agreed planning authorisation condition;
the parties sign a release agreement settling the end of the contract.

When the buyer exercises the legal withdrawal right, official guidance refers to restitution of amounts already paid within a maximum of 21 days from the day after withdrawal. In other cases, timing depends on the escrow holder, the contract and whether the parties agree on release.

When the buyer may lose the deposit

The deposit can become a real financial risk once the withdrawal period has expired and the conditions precedent have been satisfied or waived. If the buyer then refuses to sign the final deed without a valid legal or contractual reason, the seller may claim the deposit as compensation.

Common risk scenarios include:

you change your mind after the 10-day period;
you fail to apply for a mortgage in the required form or within the required deadline;
you refuse a loan offer that meets the contract's mortgage condition;
you miss payment deadlines without agreement;
you rely on an issue that was disclosed before signing and not made a condition.

The notaire will not normally release escrowed funds to the seller if the buyer formally disputes release. If the parties disagree, a court may be needed. The better approach is to make sure the preliminary contract clearly protects the risks that matter to you before signing.

Practical points for foreign buyers

If you live abroad, the deposit clause deserves special attention. It combines legal timing with practical banking problems.

Check currency risk: if your funds are in sterling, dollars or another currency, exchange rate movement can affect the amount available.
Allow transfer time: international bank transfers can take longer than expected.
Verify bank details: cyber-fraud risks are real. Confirm payment instructions through a trusted channel with the notaire's office.
Keep proof: save transfer confirmations, exchange slips and bank messages.
Align mortgage clauses: if you need finance, the condition should match your real borrowing plan.
Use power of attorney carefully: if someone signs for you, they must understand the payment obligations. See Power of Attorney in France: How It Works.

If you are buying without travelling, also read Buying French Property from Abroad Without Visiting.

How the notaire helps

The notaire's role is not only to receive the final deed. The notaire can also make the preliminary contract safer by clarifying payment mechanics, withdrawal rights and conditions precedent.

Before you sign, your notaire can help you check:

whether the contract is a compromis or a unilateral promise;
whether the payment amount is commercially reasonable;
which professional holds the funds;
whether mortgage, planning or sale-of-existing-home conditions are correctly drafted;
whether all mandatory annexes have been supplied;
what happens if completion is delayed.

For the wider purchase journey, read Buying Property in France as a Foreigner: The Role of the Notaire and Notaire Fees When Buying Property in France.

Frequently Asked Questions

Is the French property deposit an extra cost?

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

How much deposit do I pay when buying property in France?

In practice, the amount is often between 5% and 10% of the price, depending on the contract and negotiation.

Should I pay the deposit directly to the seller?

No. The money should normally be held by an authorised professional, such as a notaire or an estate agent with the required financial guarantee.

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

Yes. For a qualifying residential purchase, a non-professional buyer who validly withdraws within the 10-day period should recover the deposit.

What happens if my mortgage is refused?

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

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

After the 10-day period and once conditions are satisfied, 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 is usually linked to a compromis de vente. An indemnité d'immobilisation is usually linked to a unilateral promise where the seller reserves the property for the buyer.

Can a foreign buyer negotiate a lower deposit?

Sometimes. The seller must agree, but a lower amount may be possible if you provide strong proof of funds, financing or timing constraints.

Check the deposit clause before you sign

Once the withdrawal period expires, the deposit can become a real financial commitment. FrenchNotaires can match you with a bilingual notaire within 48 hours, including through Notaire Paris and Notaire Bordeaux.