The Diagnostics Dilemma!

Property sellers in France are obliged to have property diagnostics completed to sell their property.

With certain, limited exceptions, an energy report is legally required to advertise the property. Other diagnostic reports, (septic tank/individual drainage system - fosse septique, electricity, gas, lead, asbestos, termites, dry rot - mérule, radon gas and the natural and ‘technological’ risks report, plus from 1st June 2020 PEB - Plan d'Exposition au Bruit – as required, depending on the individual property and location and your local professional diagnostic technician will advise what is necessary for your property), are a legal obligation of the seller to provide, to enable the initial sale contract - compromis or promesse de vente - to be raised and signed.

All diagnostic reports are indicators of the state of a property and in the absence of a property survey (not an obligation in French conveyancing), not only do they give the buyers a picture of what they are considering buying, they help to protect a seller from being accused of ‘vices caches’ (deliberately hiding property defects, or discrepancies to current building standards and norms).

In my experience, frequently sellers will have the energy report completed to allow advertising of their property, but are not willing to pay to have the other reports completed at advertising stage.

While, to a degree, I can understand this - properties are often quite slow to sell, these reports have varying validity durations and are a considerable expense - let me ask you this :- would you be willing to offer to buy a second hand car without having seen the service record and MOT?

An offer made and accepted without the buyers having seen the full diagnostic reports will invariably need renegotiation at the point the reports are produced, if there are anomalies, or unfortunately, they may bring about a failure to secure the sale at all – for example, buyers weren’t aware the electricity installation needs works, or the fosse doesn’t conform. Sometimes, just the slightest anomaly can cause a previously enthusiastic buyer to get cold feet, especially if they are already even just a little unsure of their decision to buy, or have other properties under consideration.

Additionally, a delay between an offer being accepted and the buyers signing the initial sale contract - compromis or promesse de vente - is often substantial if there is a delay in reports being produced e.g. in some areas, the time required for a fosse inspection to be carried out and report produced can run into weeks/months. In the mean-time, your buyer has time doubt their decision, find a property more suited to their needs with everything in place to allow a speedy contract signing, or simply lose confidence in the property as there are ‘unknowns’ now on the horizon.

As a seller, there is nothing worse than being delighted at accepting an offer and planning your next move in life, to finding that you subsequently don’t have a sale agreed – and if the cause of such a disappointment is lack of diagnostic information at the point of a buyer viewing and offering on the property, the blame falls firmly at the feet of one party only……

Such situations can be avoided if all diagnostic reports are available before the first viewer crosses the threshold; especially if the seller has supported the reports by having bills and guarantees for all works and maintenance completed available, as an information package for interested buyers. The seller is demonstrating they are up front about what is on offer and also serious about selling.

Diagnostic companies will often offer payment plans to help spread the cost and in some cases, depending on the dates of previous reports, refresh out of date reports for free, when possible.

So, if your property is already on the market, or you are planning to advertise your property for sale, consider the benefits of providing information up front to potential buyers and make it a priority to have all diagnostic reports completed as soon as possible.

You won’t regret it – it could mean the difference between achieving a sale.... or not.