Condition suspensive de prêt explained: the loan clause in a French compromis

What the loan condition does

A condition suspensive (condition precedent) is a condition that must be met before a contract takes full effect. In a French compromis de vente (preliminary sale contract), the condition suspensive d'obtention de prêt makes the purchase depend on obtaining your loan. When you finance all or part of a home with a loan, the law requires the compromis to include it.

It protects you, the buyer. If the loan is refused on the terms in the clause, you can walk away without penalty. If you buy without a loan, you must say so in your own handwriting in the contract, and you lose this protection.

What to write in it as a non-resident

• Amount. The maximum total you will borrow. Put the loan you actually need, not a lower figure.
• Maximum interest rate. Stated before insurance, application and guarantee fees. Set a rate a non-resident can realistically obtain this quarter, which is usually above the averages on the rates page. A rate set too high commits you to buy even if the only offer is expensive.
• Term. The repayment period you are applying for, for example 20 years.
• Deadline. The legal minimum is one month. From abroad, ask for at least 60 days, since a non-resident file usually takes six to ten weeks from complete application to offer.
• Your obligations. The clause usually sets a date by which you must apply, the number of banks to approach and the proof of refusal to provide. Make sure these fit a broker-led application.

Worked example: a clause for a buyer in Canada

Assumptions: a house in the Dordogne at €450,000, a buyer living in Canada with 65% financing, and a deposit of 5% paid on signing.

• Loan amount: up to €292,500, which is 65% of €450,000.
• Maximum rate: 4.00% fixed, excluding insurance and fees. Barometers put a 20-year rate for French residents at about 3.70% in November 2026, and non-resident files price higher.
• Term: 20 years.
• Deadline: 60 days from signing.
• Deposit: €22,500, held by the notaire.

If the banks you approach refuse a €292,500 loan over 20 years at up to 4.00% within the 60 days, you send their refusals to the notaire, the sale lapses and the €22,500 comes back to you. If a bank offers €292,500 at 3.85%, the condition is met and the purchase goes ahead. The buyer would also need purchase costs of about €33,750, at 7.5%, from their own funds.

If the bank refuses the loan

Tell the seller and the notaire within the time limits set in the compromis, and send the refusal letters. If you applied for a loan that matched the clause and were refused before the deadline, the sale does not go ahead, you owe the seller nothing, and every sum you paid must be returned without deduction.

The protection depends on how you apply. Apply on time, for the amount, rate and term in the clause, and keep every letter. An application for a different loan, a late one or a refusal you caused yourself can put the deposit at risk. If you need more time, the seller can agree in writing to extend the deadline, so ask your broker to request it early rather than on the last day.

When the condition is met

The condition is met by a firm loan offer that matches its terms. An agreement in principle or a short letter from the bank is not enough. Once the loan offer arrives, tell the notaire and the seller, wait out the 10-day reflection period and accept it. The notaire then prepares the deed.

A notaire on your side who speaks English can check the clause before you sign the compromis. Each side may have its own notaire at no extra cost, since they share the regulated fee.

Next step

Talk to a broker before you sign the compromis, so the amount, rate and deadline in the clause match what banks will actually offer you. Start with the eligibility check, and see the buying timeline for how the clause fits the other deadlines.

Questions