BUYING A PRIVATE PROPERTY IN FRANCE

If you intend to purchase a property in France, the chances are that the French conveyancing system will be new to you, and the following information is intended as a very brief introduction to help explain the appropriate procedures in practical terms. Just remember to take your time and try to be patient. Accept that things may take longer than you envisaged as you are after all buying in a different country with a different culture, laws and customs. The French system has some relative advantages in that once the buyer and vendor have agreed the price then a binding contract is entered in to and therefore there is less chance of 'guzzumping'.

Don't get bogged down with the formalities - as in the U.K. pay some professionels to carry out the work on your behalf.

Again take your time and try not to compromise. For example you may want to buy your bread and croissants fresh every morning from a traditional boulangerie. If you want a dream home within walking/cycling distance of a boulangerie, then don't buy something 10 miles from the nearest shops. Unless you like cycling that is!

Terminology - Notaire (Notary). The 'notaire' is a government official who represents neither the buyer or seller and is the only official regulated to conduct property transactions. The notaire will conduct various searches and enquiries.

You should, however, engage an advocat (solicitor) for advice on general planning proposals for the area and inheritance tax planning.

Remember also that the buyer is reponsible for paying the legal costs and taxes relating to the purchase. The notaire will outline all the associated costs to you at the outset.

A) THE CONTRACT

As in many countries, the purchase usually takes place in two stages:

A1) The preliminary contract or compromis de vente is the document you sign in the case you wish to purchase a private property that is more than 5 years old. The contract is binding on both parties. It will state the price, deposit and exactly what is included in the sale. Clauses will and be added ('clause suspensive') and the most common ones relate the purchaser obtaining the monies (mortgage) and that if there is an existing mortgage on the property it will be paid back from the sale. If you fail to get an offer of the required loan, then you can withdraw from the transaction without financial penalty. On signature of the contract, you are generally asked to pay a deposit of between 5 to 10 % of the agreed price. This money is paid to a notary and is held in an escrow account (a holding account). A completion date will be agreed and stipulated, usually to take place within 12 weeks.

A2) The reservation contract is the document you will sign when you purchase a brand new property or one that is less than 5 years old. On the day you reserve the property you will have to sign :-
- the contract itself,
- the specification sheet of the building
- the block plan as well as the floor plan,
- and in the case of a lease-back program, the lease contract
You will also have to hand over a bankers draft or building society cheque of 5 % of the purchase price to the notary in charge of the development.

B) THE SIGNATURE OF THE FORMAL TRANSFER DEED

This formal transfer deed or acte de vente is drawn up by the notary and once all remaining funds are deposited can be signed. This then completes the transfer of the property to you. You will then be issued with a certificate (attestation) that proves you are the owner.

We are here to help you with each and every stage and can put you in touch with a notary and solicitor qualified to practice in France and the U.K.