Helpful Hint: From the signing of the Initial Agreement the buyer is responsible for the insuring the property.

Helpful hint: When we signed the Initial Agreement, the Immobilier (Estate Agent), and the Vendors were present. All parties agreed the actual completion date at this time.

Helpful Hint: Our Immobilier (French Estate Agent) arranged for an English Speaking Notaire, and arranged a meeting, and he explained all the procedures to us in a way we could understand.

Helpful Hint: Our English speaking Notaire arranged for the necessary certificates to be transferred into French.

Helpful Hint: On Completion of Sale, we were asked to pay the Vendor the remainder of the Taxe d'habitation (Residential Tax)

 

Buying a French Property

Buying a property can be very confusing - there are many different types of French properties on the market.

French laws differ slightly depending on the type of purchase you wish to make.  

Here is the technical jargon with our experiences listed on the side, in the form of Helpful Hints, which we hope will help.

There are three main ways of owning a French property

1. Sole ownership
2. Joint ownership
3. Limited company ownership

The main considerations for each of these methods are:

1. What happens on death?
2. What are your French income tax and capital gains tax positions?
3. What is your French succession tax liability?
4. What UK tax is payable?
5. What French wealth tax is payable?
6. French property ownership by certain "tax haven" residents

For Buying

A property with 1 hectare (2.47 acres) of land or less then the following procedure applies:

(If the house has more than 1 hectare the procedure is basically the same except that there might be intervention by The Socit d'Amenagment Foncier et d'Establissement Rural (SAFER) which has an automatic right of pre-emption in order to preserve land which it feels should either continue or remain in agricultural use, but your Notaire (French Solicitor/Lawyer) by law will notify this department and give you the opportunity to object to the sale. Should you do so, then any agreement is null and void and you cla

The Initial Agreement

An agreement is negotiated between buyer and seller and the initial contract which is called a Sous-seing Priv, is drawn up by the Immobilier,or a Compromis de Vente, is prepared by the Notaire, and then signed by both parties. This is a legal document, binding both parties to the sale. At this stage the buyer pays a deposit of a minimum of 10% of the purchase price which stays with the Notaires Office in a special account until such time as completion takes place or the purchase is cancelled. The property is taken off the market at this stage. Should the buyer back out then the deposit is lost.
The Promesse de Vente is another type of contract, where the contract is not binding on both parties to the same extent as the Compromis. The vendors still commit themselves to selling the property to the purchasers by signing, but this commitment takes the form of promising not to sell it to anyone else within a stated period, usually 3 months. A deposit is paid of between 5% and 10% but the purchaser will again forfeit the deposit if they do not go ahead.
There are other forms of preliminary contract such as the offre de vente, offre d'achat and an exchange de lettres these do not appear to be recommended in preference to the Compromis or the Promesse.
It is unusual in France to have a Survey, it is more acceptable to ask an Artisan (expert) to call and arrange to give you a Divi (Quotation) for works before signing the Compromis as once you have signed it is binding. (i.e. it is not acceptable to say it needs a new roof and too expensive).

After the signing of the Compromis or Sous-Seing Priv there is a period of normally 6 - 8 weeks in which the searches are carried out to ensure that the property is not subject to any imminent environmental changes, during this time the purchaser will be required to resolve the financing of the purchase. The Notaire carries out searches and other contractual matters, and unlike most European Solicitors/Lawyers he is not appointed to act for either party in the transaction but as a public official whose duty is to the State. His function is to ensure that the transaction is carried out legally and accurately and in accordance with the proper processes and to give the transaction absolute validity that cannot be contested.

The Final Contract

The final contract, the Acte de Vente is signed at the Notaire's office and the property passes to the buyer, the balance of the purchase price is paid to the Notaire who then pays the vendor. The balance must be in the Notaire's possession before the contract is signed. The Notaire also requires before completion a copy of your birth certificate translated into French and, if applicable, a copy of your Marriage Certificate also in French. 

French succession law does not allow you to leave your share of the property to whom you wish - even if you have an existing Will. Advice from the Notaire should be sought before Completion.

Helpful Hint: Our English Notaire put us in touch with an English speaking translator who came to the Notaires Office with us when we signed the Final Contract (Completion of Sale) and he translated the technical information for us.

Helpful Hint: When we viewed the property there was a cooker, wood burning stove, and cupboards, etc. After Competion of Sale we went to the house to find these had all been removed. We were advised this is normal practice and acceptable in France when buying a property, unless one agrees with the Vendor/Immobilier that the prices includes certain items i.e. cupboards etc. Take nothing for granted, it is not like buying an English property.

Helpful Hint: French Succession Law does not allow you to leave your property to who you wish, not even if you have a Will. It is a complicated system, and we recommend you seek advice from the Notaire who will explain the various methods open to you. This must be raised and dealt with before Completion of Sale.

Helpful Hint:
Servitudes - not a word known in England - are the rights over a property enjoyed by others. These rights are attached to the property and are transferred with a property when it is sold. It is important to ask about any when purchasing.

Helpful Hint: There is a saying in France    Buyer Beware