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The material available on this website is designed to provide general information only. Whilst every effort has been made to ensure that the information provided is accurate, it does not constitute legal or other professional advice.
A Brief Guide to Buying Property in France
There are three key stages to buying in France:
The Offer
The offer in France, if accepted, is expected to be binding. The amount, subject to certain conditions, should therefore be considered and include any conditions that you may seek to rely on later, for example - finishing off a particular repair, including a piece of land or obtaining planning permission for redevelopment of an outbuilding.
When the offer has been agreed between buyer and seller, a Notaire will be appointed to supervise the transfer of the property. It is customary in France for one Notaire to act for both parties, to both of whom he/she has legal obligations. Alternatively, it is acceptable for each party to appoint their own Notaire and the fees to be shared. If the buyer chooses to employ another adviser (UK solicitor for example) then he/she will be responsible for both the Notaire and the independent adviser's fees.
The Compromis de Vente
The Compromis de Vente will identify all parties, describe the property, confirm price and fees to be paid. Buyers will be asked to submit copies of birth, death, marriage and divorce certificates of all parties, including children, together with copies of utility bills and passports to satisfy money laundering regulations.
The Compromis de Vente, often prepared and signed at the Immobilier (Estate Agent), confirms the agreement made between buyer and seller, including any conditions. Non nationals buying in France are advised to sign a Compromis prepared by a Notaire only, who will have an obligation to ensure that all appropriate conditions are included.
In addition to the conditions agreed between buyer and seller and, particularly important, are "clauses suspensives" - conditions which if not met will allow the buyer to withdraw without penalty. Standard "clauses suspensives" include an obligation on the sellers to obtain specialist reports confirming that the property is free from lead, termites or asbestos.
Most buyers will include a "clause suspensive" making their purchase dependent on them getting a mortgage. This should be quite specific, for example - a loan of €0,000 from xxxx French bank - a remortgage of £0,000 from xxxx UK bank secured against the UK address. The reason for this is that in the event that the buyer cannot arrange a mortgage, the vendor is entitled to raise one for him/her which must be accepted, even at unfavourable rates or terms.
Other "clauses suspensives" will relate to the agreements made between buyer and seller at offer stage. Once signed there will be a seven-day cooling off period for the buyers only. The sellers are committed to the sale. At the completion of the seven days a deposit of usually 10% of the purchase price will be expected by the Notaire and should be transferred into the clients account.
Much is heard about inheritance laws and taxation in France. Buyers should make clear exactly whose interests they wish to protect and the appropriate clause will be inserted into the Compromis and Acte de Vente. Principally, this will protect a surviving spouse's right to occupy the property in the event of a partner's death and ensure that children are treated as wished. For this reason it is imperative that a will is made in France and a copy attached to the UK will and vice versa.
The Acte de Vente
The Acte de Vente follows searches, surveys and inheritance provision. Searches confirm ownership, boundaries, rights of way and debts registered against the property. Surveys, although available, are not customary in France, even by a lender considering a mortgage application. Sometimes a specialist or a registered local builder will prove a good source of guidance. The Notaire will also ensure that a termite check, lead and asbestos surveys are done.
Inheritance laws in France differ to ours in UK - take professional advice and arrange the contract accordingly. Once understood, the arrangements are straightforward.
Once you know the euro amount that will be required for completion, transfer those funds to the Notaire’s account in plenty of time for the signing day. Missing the completion date can mean loss of house and deposit. The buyer is entitled to re inspect the property on the day of signing, because the contract will include the clause "sold as seen on signing date". Although it is possible to arrange a "Power of Attorney" to sign on your behalf, the signing is definitely an occasion to attend. All parties meet in the Notaire's office "etude". The "Acte de Vente" is read through and explained, any last minute alterations made and finally signed. The formality of the event underlines the importance of the matter.
Money cleared - contracts read, understood and signed - keys are handed over - the property belongs to the buyer.