The little-known document that can derail a property sale in France

When buying or selling a property in France, most people focus on price, location, or financing. However, a small, often overlooked document can be enough for the sale to fall through.

This document is the Statement of Risks and Pollution (ERP - État des Risques et Pollutions), a legal requirement that can derail a property sale.

The ERP is a document that informs the buyer about risks affecting the property. Under Article L125-5 of the Environmental Code, the seller must inform the buyer if the property is exposed to risks such as floods, droughts, and landslides, as well as mining, technological, seismic, or soil movement risks (clay shrinkage and swelling).

When should this be provided?

According to the law, the ERP must be given to the buyer as early as the first visit, whenever a visit takes place and must be less than six months old. It must also be included in the technical diagnostic file attached to the sale, the preliminary sales agreement, and the final deed of sale.

Real-life case example in France 

French courts have already dealt with situations where risk information was not properly disclosed during a property sale. 

In a case examined by the French Supreme Court (Cour de cassation), it was determined that a property was sold without properly informing the buyer that it had previously been affected by a natural disaster linked to drought and soil movement. 

The seller had omitted to mention that the property was located in an area where an official “catastrophe naturelle” order had been issued, following ground movement that had caused structural damage in the region. 

After the purchase, the buyer discovered significant cracks affecting the building. The Court ruled that the omission of this information constituted fraud by omission because it influenced the buyer’s decision to purchase the property. 

Additionally, the Court confirmed that even if later technical analysis suggested that the damage was not directly caused by that phenomenon, the lack of disclosure alone was enough to invalidate the sale. 

Timing is very important

The ERP must be up to date at the moment of signing. This means that even if the document was correct at the start of the process, it can become outdated before the final sale.

What happens if the ERP is missing or wrong?

In cases where the document is not properly provided, the buyer can ask to cancel the sale or request a reduction in the price. This happens because the buyer’s consent was not fully informed. For this reason, both buyers and sellers are advised to verify that the ERP is complete and valid throughout the transaction process.