Buying
Property in France
Legal
Advice
Make
sure you do your sums correctly. In France it is usually the buyer who
pays all the fees. On top of the 'net' purchase price of the property,
there will be notaire's fees (including stamp duty), which are usually
about 6-8 per cent of the net purchase price. You will also have to pay
the French agent's fees and these can vary from 4-15 per cent, though
7-8 per cent is more common. The price displayed in a French agent's
window should include the agent's fee (the price will be followed by the
letters FAI. if this is the case). However, it will not include the
notaire's fee, so you'll need to add this in.
If you
are using your own legal representative, you'll also have those fees to
the total. When looking at websites, as well as through your French
agent's books, always ask exactly which fees are included in the prices.
Take your agent's advice on making the offer. For instance, in the UK
it's usual to offer considerably less than the asking price but this can
cause offence in France. Your agent should know the lie of the land.
Make sure you see the plans of the property and its land (plans
cadastres) before you make an offer.
The compromis de vente is usually the first document you will sign,
though you may be asked to sign a promesse d'achat, especially if you
are making an offer below the mandated house price. This shows the
vendor your commitment to buying at the offered price. The compromis is
legally binding and is therefore a very important document.
The compromis is like the first draft of the final contract. Basically,
it sets out the details of the purchase (what you are buying) and those
involved in it (the seller and the buyer) as well as showing how much
you are paying (including the fees). It has to be signed by both buyer
and seller.
This is the time to raise any conditions you require that would enable
you to withdraw from the sale, for instance: your failure to obtain a
mortgage, negative results from termite surveys, or failing to receive
planning permission to convert outbuildings. Such conditions should be
inserted in the compromis as 'clauses suspensives'.
In order to have the compromis drawn up, you will need to provide your
passport and relevant marriage and divorce papers. If you're borrowing
money to purchase the property, you'll need paperwork with details of
the loan. Ideally, you should take this documentation with you on your
search trip, as that will allow the process of drawing up the compromis
to begin immediately. You should expect the compromis to take 3-4 weeks
to arrive.
If you haven't already, you should definitely seek professional advice
once you receive the compromis. It is written in French, so it is wise
to have it professionally translated - you must be sure of what you are
signing.
Once you have agreed to buy the house, you should change your money.
Once the compromis is signed by both parties, it is returned to you, the
buyer, and you then have a seven-day cooling off period. During this
time, you can withdraw from the sale without penalty but the vendor
cannot. Once the cooling off period is complete, the contract is binding
on both parties and then the deposit is due (very occasionally, deposits
can be required sooner but this is rare - consult a French property
specialist if you are asked to pay before this time). The deposit is
usually 10 per cent of the net purchase price but can sometimes be less.
The compromis is now a binding contract (subject to the clauses
suspensives) and if you withdraw, you could lose your 10 per cent
deposit.
Once you have signed the compromis, the searches on the property begin.
These might include ownership, land boundaries, rights of way, termite
checks, lead and asbestos surveys. The notaire is responsible for
ensuring that these take place and you do not need to pay separately for
them.
Building surveys are not usually done in France but surveyors do exist
and you can have a full UK-type survey done (see the classified pages of
French Property News for details of British surveyors working in
France). Many French buyers do not bother with a survey but may take out
a registered builder's opinion on the property. You should discuss the
available options with your agent when first deciding to buy the
property.
You also need to take advice on your inheritance provision. Whatever
your nationality, the inheritance of your property is subject to French
law and the provision made has to be included in the house-buying
contract. It is wise to consult a legal representative on this because
French inheritance law is extremely complex and you don't want to find a
surviving partner paying unnecessarily high death duties if the worst
should occur.
You need to transfer the balance of your payment to the notaire's
account in plenty of time for the final signing date. This date should
have been agreed with the vendor, via your agent or legal representative
and it is important that you meet the deadline. If you miss the
completion date, you can lose both the house and your deposit. This
transaction may also involve your mortgage lender, who must ensure that
the money for completion is in the notaire's account in plenty of time.
No transaction will be complete until all monies have been cleared in
the notaire's account.
The signing in France is held in the notaire's office and it's usual for
the buyer to be there, but if you can't be, you can arrange a power of
attorney for it to be signed in your absence. Your agent should arrange
for you to view the property on the day of the signing because the final
contract (projet) has a clause saying 'sold as seen on signing date', so
it's important that you know what state the property is actually in!
It's not unknown for problems to arise even at this late stage with
regard to fixtures and fittings.
Congratulations - the property is now yours!
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