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Forfeiture clause: can you lose your deposit despite a suspensive condition?
Droit-immobilier

Forfeiture clause: can you lose your deposit despite a suspensive condition?

📅 Decision of 19 December 1983⚖️ Cour de cassation👁️ 10 views📖 3 min read

Article 74 of Decree No. 72-678 of 20 July 1972 expressly distinguishes between a forfeiture clause and a suspensive condition, and it is irrelevant for the validity of the former that a party has obstructed the fulfilment of a suspensive condition or can no longer rely on it. And where a Court of Appeal has applied a forfeiture clause stipulated in a promise to sell, it is precisely because it considers that the public policy provisions of Article 6(3) of Law No. 70-9 of 2 January 1970 and Article 74 of the aforementioned Decree do not allow the estate agent to demand payment of a commission, notwithstanding a contrary clause inserted in the promise to sell.

Reference decision: cc • No. 82-14.097 • 1983-12-19 • View decision →

This decision provides important clarification on your property law. Here is what it changes for you.

The situation

Article 74 of Decree No. 72-678 of 20 July 1972 expressly distinguishes between a forfeiture clause and a suspensive condition, and it is irrelevant for the validity of the former that a party has obstructed the fulfilment of a suspensive condition or can no longer rely on it. And where a Court of Appeal has applied a forfeiture clause stipulated in a promise to sell, it is precisely because it considers that the public policy provisions of Article 6(3) of Law No. 70-9 of 2 January 1970 and Article 74 of the aforementioned Decree do not allow the estate agent to demand payment of a commission, notwithstanding a contrary clause inserted in the promise to sell.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

  • Strictly comply with the legal time limits for appeals
  • Keep all your supporting documents (titles, deeds, correspondence)
  • Anticipate: preventive advice always costs less than litigation

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📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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Legal information

  • Number: 82-14.097
  • Court: Cour de cassation
  • Decision of: 19 December 1983

Keywords

droit immobilierjurisprudenceimmobilier

Practical use cases

1

Estate agent loses commission despite buyer’s default

A first-time buyer in Lyon signs a promise to sell with a forfeiture clause but then fails to obtain a mortgage, obstructing the suspensive condition. The estate agent demands his commission under a contrary clause in the promise.

Practical application:

This case law confirms that a forfeiture clause can be enforced even if the buyer obstructed the suspensive condition, but the estate agent cannot claim commission because Article 74 of Decree No. 72-678 prohibits it. The buyer should refuse to pay, citing the public policy rule. If the agent persists, the buyer can seek legal advice or a court declaration that the commission is void.

2

Landlord penalises tenant for obstructing sale

A landlord in Paris includes a forfeiture clause in a lease allowing termination if the tenant fails to vacate after a sale. The tenant delays the sale by refusing access for viewings, causing the buyer to withdraw. The landlord triggers the forfeiture clause.

Practical application:

The landlord can validly apply the forfeiture clause even if the tenant obstructed the suspensive condition (the sale). The tenant cannot argue that the condition was not fulfilled because of his own actions. The landlord should send a formal notice confirming forfeiture, then proceed with eviction if necessary, keeping evidence of the tenant’s obstruction.

3

Co-owner blocks sale of shared property

Two co-owners in Marseille agree to sell a jointly owned apartment with a promise to sell containing a suspensive condition that the sale is completed within three months. One co-owner deliberately delays signing the final deed, preventing the condition from being fulfilled. The other co-owner invokes a forfeiture clause.

Practical application:

The co-owner who did not obstruct can rely on the forfeiture clause to terminate the promise and potentially claim damages. The case law clarifies that the public policy rules on estate agents’ commissions do not affect forfeiture clauses between co-owners. The aggrieved co-owner should send a registered letter invoking the forfeiture clause and, if necessary, seek a court order to force the sale or dissolve the co-ownership.

Maître Cécile Zakine

About the author

Maître Cécile Zakine — Lawyer at the Alpes-Maritimes Bar, Doctor of Law. Every article in this magazine is based on the analysis of a real court decision, commented and put into perspective by Maître Zakine’s team.

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Disclaimer: The analysis presented on this site is for informational purposes only and does not constitute personalised legal advice. For advice tailored to your situation, contact a qualified lawyer.

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