Bank Fraud in Property Sale Collapse
The case dates back to October 2022, when a buyer and seller signed a sale and purchase contract for an apartment in the town of Gap, Hautes-Alpes for €153,000.
The sale was subject to the buyer securing a mortgage of €132,000 over 26 years at an interest rate below 2%. The buyer also paid a €7,650 deposit, held in escrow by a notaire.
After receiving mortgage refusals from two banks, the buyer believed he had found financing through Boursorama Banque, one of France’s leading online banks. In reality, he had become the victim of a sophisticated impersonation scam.
Fraudsters managed to steal €44,950, making it impossible to meet the loan conditions specified in the contract.
The seller refused to return the deposit, arguing that the financing condition failed because of the buyer’s own negligence.
The core of the dispute revolved around whether the fraud constituted a force majeure or if it was the buyer’s responsibility.
The court examined evidence including police reports, fraudulent emails, bank records, and official statements from Boursorama Banque. Judges concluded that the buyer had made genuine and diligent efforts to obtain financing and had not acted negligently.
Most importantly, the court determined that the collapse of the transaction resulted directly from external criminal fraud rather than from any fault on the buyer’s part.
Under Article 1218 of the French Civil Code, force majeure refers to an event that is external, unforeseeable, and irresistible, making contractual performance impossible.
The judges ruled that the banking scam met those criteria. Because the fraud deprived the buyer of the funds necessary to complete the purchase, the financing condition could no longer be fulfilled through no fault of his own.
As a result, the seller was denied access to the escrow deposit, and the buyer was entitled to recover it.
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