Buying a property in France

Buying a property in France is a significant financial undertaking. Knowing how the sales process works and what factors need to be taken into consideration when buying French property is therefore vital if you are to be successful in your quest.

When you first inquire about a property on the French Property 1st Property website you'll be put in direct contact with the French selling agent. They will answer all of your questions in English (or French if you wish to conduct business in French), and assist you to arrange a viewing of the property.

If you decide that you wish to buy a property, the agent will normally request a 10% deposit. You will be required to sign a Compromis de Vente, which is the pre-contract agreement detailing the conditions of sale, price agreed and clauses that the transaction is subject to. It is at this point that you should request inclusion of clauses to enable you to withdraw from the transaction if circumstances do not favour you. For instance, if you fail to obtain a mortgage, fail to receive specific planning permission, or if the home fails on significant survey points, then inclusion of these clauses will render the transaction null and void.


The Compromis de Vente
The Compromis de Vente is a legally binding contract, and so it is strongly recommended that you seek professional advice before signing. The document is normally written in French, so again it is strongly recommended that you have it professionally translated. Normally, it takes 3-4 weeks for the Compromis de Vente to be written, and the agent will require a copy of your passport along with any marriage or divorce papers.

Upon signing the agreement the 10% deposit becomes due. This is paid to the notaire. The notaire is an official employed by the French government to record and oversee the transaction. A 7-day cooling-off period then ensues, during which time you, the buyer, can withdraw without penalty.

After the 7-day period expires, the Compromis de Vente becomes legally binding. You can still withdraw at this point, but unless you do so in line with the clauses in the Compromis de Vente then you will lose your 10% deposit.

Before Completion
It normally takes an additional 4 - 8 weeks to complete your French property transaction, although this will vary depending upon the complexity of the sale and the type of property you are buying. It may also depend upon how long it takes you to obtain a mortgage.

Before completion can happen, the searches on the property need to take place. You should appoint a solicitor to handle this on your behalf. Searches to be performed include rights of way, land boundaries and ownership. Surveys can also be undertaken at this point including a full structural survey through a professional surveyor, which you will need to appoint should you wish to have a UK-style survey performed.

You should also seek professional tax planning advice at this stage. This will help you to get the most out of your foreign property purchase and avoid being stung by heavy costs in the future.

Completion
The signing of the final contract will take place at the notary's office in France. It is important to have the 90% purchase balance already transferred to the notary's account prior to the completion deadline. If the balance is to be provided through your mortgage lender then it is imperative that they understand when and where the money must be paid to before the completion deadline. On the day of signature, the selling agent will take you to view the property before signing so you can be sure that everything is in order. If you cannot be present then you can give power of attorney to a nominated person to sign on your behalf…the property in France is then yours!

Costs
In France, the buyer pays all of the costs involved in the transaction. The selling agent's fee, which is often included in the price of the property, will typically amount to between 7%-8% of the purchase price, although this does vary from agent to agent. The notaire will also levy a charge of 3% of the agreed purchase price for their services. Additionally, if you appoint a solicitor or lawyer then you should expect to pay them the equivalent of about 1% of the property price to cover their costs. There is also transfer tax of around 7.5% on old-style properties to consider and annual taxes levied at the owner each year by the government.