Guide to purchasing a property in France
WHY BUY IN FRANCE?
For centuries the world has revered France as an ideal environment in which to live, work and holiday.
Whether it is the rural lifestyle, space and pace of life, the culinary lure or the simple "joie de vie" France offers it all from majestic peaks in the Alps, peaceful river valleys or the beaches and sand dunes of the coast.
Today, unlike some more distant destinations that can in reality only be accessed by flights on little know airlines, your home in France can also be accessed by car or luxurious high speed train.
It is no wonder that France is the number one tourist destination in the world and the same attractions have inspired ten's of thousands of buyers from across Western Europe to invest their money, time and enthusiasm in homes in "la belle France".
WHICH AREAS SHOULD I CONSIDER?
Most homebuyers have visited France on holiday before putting down roots and will therefore have favourite areas that they are drawn back to but even experienced Francophiles can be bewildered by differences and the breadth of choice between the Departments and Regions.
Many are initially guided by both the ease of access from "home" and the type of life they wish to lead, such communications having been revolutionised not only by cheap reliable flights to hitherto little known gateways but also by the ever-growing network of Autoroutes and TGV lines.
For the majority of incomers it is the quiet, peaceful and secluded rural areas that draw them to France and the alternatives are varied and bewitching.
Some will weekly commute from the Pas de Calais, others follow friends and family to the Charente and Dordogne and still more will be tempted by rental income from gites or chambres d'hôtes along the Loire.
Whatever your initial thoughts, it is highly recommended to carefully firstly research and secondly visit a variety of areas before really getting down to the business of house hunting for without that forethought the vastness of the country may well swallow up your time and enthusiasm!
PREPARATIONS PRIOR TO VIEWING
Essentially the same as you would before buying a home in your home country or indeed before making any other such major capital purchase!
a) RESEARCHING THE MARKET
In today's age the internet is the first port of call for those with access. Browse our website http://frenchpropertyshop.com to obtain information on the different regions and get a feel for house prices across much of France.
b)UNDERSTANDING FRENCH PROPERTY DETAILS
Few French estate agents produce British style property details or "particulars"!
Most properties are offered for sale by agents on a "non exclusive" (or multi listing) basis. Our colleagues, who we have selected for their professionalism, range of listings, grasp of English and enthusiasm, will typically describe a property with a paragraph or two of text and anywhere between one and seven photographs.
They WILL NOT generally give i) room by room measurements or descriptions (and indeed cannot understand why the British need them "Surely if they're serious they can see what its like from the pictures and total size?" is often the retort when asked for such detailed information)
ii) or the precise location of the property (they are worried about being left out of the sale because of the "non exclusive" listings) but
will give i) the total size of the house in square meters (as a rough guide 100 sq. m. will give c 3 bedrooms; 130/150 sq. m. 3/4 bedrooms; 170/200 sq. m. 4/5 bedrooms) and
ii) the area of the garden or grounds in square meters or hectares (1 Hectare = c2.47 Acres).
iii) the type of location i.e. whether rural, village/hamlet or town.
Only if you have very specific and 100% definite requirements (e.g. will that unconverted barn get permission to convert etc) should you really worry about asking for additional information.
c) CHECK YOUR BUDGET.
Not everyone is lucky enough to be able to buy for cash! Most have to consider selling their existing home-
How much is it really worth? - get marketing valuations from a number of reputable agents
- see how much other houses have sold for in your area or road (http://www.nethouseprices.com )
d) THINK THROUGH THE "MUST HAVE" FEATURES OF YOUR NEW HOME.
Actively consider not only the motivation behind buying a home In France but also separate a list of your needs and wishes into essential and non-essential categories e.g. you might dream of a character farmhouse in the countryside but if it isn't within your budget might you consider a contemporary home if it offers the seclusion that is essential to you.
Apart from the budget, consider the use the property will be put to. If, as an example, you require a holiday cottage having acreage may entail excessive maintenance during your visits and your "holiday" will more likely be spent on the lawn mower! Whilst conversely, for a permanent residence you will possibly prefer more land.
e) GET READY TO MARKET YOUR PROPERTY BEFORE CONDUCTING ANY VIEWINGS.
Agents who you approach to buy through will not take you seriously unless you are a cash buyer, are marketing the property or have it "under offer".
1) DECIDE WHICH AGENTS YOU WANT TO MARKET THE PROPERTY
-What are they going to do for the money? Local, regional, national advertising;
- which websites will they promote it on? Will they do the viewings? Quality of sales details?
- Floor Plans? Prominent office? Do they have a track record of selling your type of property in your area? Do they market themselves or your property through a network of offices? What commission rate do they charge?
2) Instruct them to start marketing at the time to suit both your preferred schedule and the best selling season for your home.
3) Accept an offer having followed your agent's advice on the strict understanding that you will not exchange contracts on the sale until you have first found a house to purchase- most serious buyers will wait for 2 to 4 months to help you "complete the chain".
VIEWINGS
This is the time to plan a week off work in 14 to 20 days time (the lead in will enable you to book cheaper travel!) having contacted us to arrange viewings of properties in France in your chosen area.
Remember that the properties we list are selected to demonstrate the type of dwellings and prices in their areas and are only a small portion (20/30%) of all the houses our colleagues (or "confrère") currently have available. Thus if we are only listing a few that you like the look of, by arranging a visit to our colleagues on the ground you will have access to a choice of many more! It is only by meeting the agents and being able to demonstrate to them and us that you are a serious, qualified buyer that you will be told about the dream house just entering the market before other competing buyers!
When you meet the agent they will have been informed by us of your requirements and ability to buy. They will typically allocate an entire morning or afternoon (and possibly a whole day) to meet you at their office, get to know you and your tastes and to drive you round to relevant houses in person.
Because of the time they are allocating exclusively to you, it is exceptionally inconsiderate (and will guarantee a lack of future cooperation) to cancel any viewing appointments with less than 48 hours notice!
TRAVEL AND ACCOMMODATION
Our Travel Guide (copy herein and on our website http://www.frenchpropertyshop.com) contains up to date flight, ferry and train information as well as a list of rough journey times by car.
Whenever you make a Viewing Appointment with FPS you will be supplied with a short list of recommended local hotels and B&B's (chambres d'hôtes).
It is requested that you make such arrangements directly.
HOW CAN FPS HELP?
Yes, we are estate agents wanting to sell you a house. However, our experience has shown that people wandering off to France on their own often come back "empty-handed" having been to unsuitable areas with unrealistic property criteria and not having been treated as serious purchasers!
As mentioned previously, the French system is based on people having prior appointments... not like in the UK where one can happily walk in off the street.
FPS will help guide you through the choice of regions and preparing for your overseas purchase before specific houses are really discussed.
Thus, having studied the information we offer both herein and on our website, www.frenchpropertyshop.com, we encourage you to call us with any questions you may have, whether about property or administrative procedures in France.
Our team, many of whom have lived in France for many years, are here to answer such queries as well as sharing their enthusiasm and love for France with you.
DOES BUYING THROUGH FPS COST ME ANYTHING?
All the property asking prices we quote are inclusive of Agency fees and you pay no more by buying through FPS than by buying direct through the local Agent. The commission element is the same, it is purely that such commission is divided between the local Agent and us rather than that Agent retaining all of it. Thus, for no extra expenditure you get the benefit of being guided through all the search, legal and financial processes by experienced staff in English!
WHAT IS INCLUDED WITHIN THE QUOTED ASKING PRICE?
All the figures we quote include all agency fees and TVA (VAT).
WHAT HAS TO BE PAID IN ADDITION TO THE AGREED PRICE?
Fundamentally, just legal and registration fees levied via the Notaire and purchase tax or stamp duty. There are precise rules and regulations as to how much notaires charge (no surprise really since they are "fonctionnaire" of the state!) which could be a chapter in itself, but as a general guide these add up to another 7 or 8% on top of the price you have agreed to pay.
MAKING AN OFFER
Having found a property you would like to buy promptly make an offer (remember that under French law you have a 7 day "cooling off" period in which to withdraw following signature of the "compromis de vente") including the following information:
- i)The Price You Are Offering. Some vendors will want the asking price, others may consider a lower offer. Although you may feel that that dream home is financially "out of sight", it might not be- try an offer. "If you don't ask, you won't get!" The worst the owner can say is no!
- ii)Your Position & Ability to Proceed. We should already be aware of this but confirm to the agent or ourselves whether your purchase is dependent on the sale of any property (if so, the status of any sale) or on obtaining a mortgage (whether in France or the UK).
- iii) you require the contract to be subject to such as planning permission (certificat d'urbanisme) or any contents or furniture you wish to have included in the purchase.
- iv)Targeted Completion Date. It is notoriously difficult to set an exact date under the French conveyancing system but giving an indicative date helps concentrate the minds of the Notaire and other advisors.
If your offer is accepted, great. If not a higher bid may be! Keep on trying until either you have been successful or you decide that the owner is being unreasonable but even then never totally "burn your bridges"- the vendor might still change his mind in a few weeks or months time.
ON ACCEPTANCE OF AN OFFER
FPS and the agent will then prepare and send out a "Memorandum of Sale" confirming the terms and conditions of the sale and the parties (owner, buyer, Lawyer-Notaire) involved.
This gives the information necessary to the notiare (although occasionally this is prepared by the agent- perfectly legal in France and often faster) in order to allow them to prepare the pre-contact (compromise de vente).
All French residential sale contracts are subject to obtaining a mortgage offer as of right. If you require a mortgage, the details will be inserted in the pre-contract (comprimis de vente) to take advantage of this statutory pre-condition. The buyer is then given a timetable within which to arrange his mortgage prior to completion. We can assist you with this.
If your purchase is not subject to a mortgage, then you will have to sign a declaration to this effect to avoid any confusion.
All comprimis de vente include a clause stating that the property is bought as seen other then as described in the statutory surveys for asbestos, lead and termite infestation which are arranged and paid for by the owner. Any conditions the buyer or seller agreed to when accepting the offer e.g. obtaining a planning certificate for any improvements, they can be noted in the comprimis de vente as a pre-condition. The estate agency or the notary's office will then ensure these matters are addressed, to protect the buyers' interest, before the deed of sale (acte authentique) is prepared.
The seller's notary will usually do the conveyancing and the buyer would usually use the same notary unless there are exceptional circumstances, in which case we can introduce you to a second notary. Please note that unlike in England where there are usually two solicitors involved it is perfectly normal in France for the notary to act for both buyer and seller sine he is a "functionaire" of the state and is responsible to both parties as well as collecting relevant taxes.
It is also the case that the owner of a property in France owes the buyer a strict duty of care to provide a complete dossier of information on the property on any matter which may affect the buyer's offer.
The Notaire or FPS or the agents will ensure that all relevant information and a plan of the property is made available to you with the draft (comprimis de vente).
As an integral part of our service we will either in person or on the telephone run through the general wording of the comprimis and guide you through its general clauses and meanings but we do not provide a complete translation process as a pure English
translation of French legal terminology invariably is as confusing if not more so than the French original! Thus, general comment and advice is of far better comprehension.
Some notaire's and agents produce a "dual language comprimis" which is perfectly legal. We wish more did so!
If you require specialist independent legal advice, we can recommend relevant experienced practitioners.
DEPOSIT
The buyer usually pays a deposit of 10% of the purchase price at the time of signature of the pre-contract (comprimis de vente).
FOREIGN EXCHANGE
All prices we and our colleagues quote are in Euros (€).
For those requiring transfer of money from one currency to euros then we usually find that the services of a specialist provider are far better value both for charges and in offering better exchange rates than High Street banks.
We are pleased to recommend the services of the longest such established such firm and can provide you with full contact details upon request.
COOLING OFF PERIOD
The buyer has a right of retraction for seven days after receipt of the copy signed comprimis de vente.
STANDARD CONDITIONS
The comprimis de vente is always conditional on a number of matters undertaken by the notaire after signature. E.g. obtaining a planning search to ensure the property is free of planning blight.
The buyer has the right to withdraw from the purchase if this certificate discloses serious planning matters which may affect the value of the property.
The Notaire will also ensure the title ownership is in order and free from any mortgage or charge in excess of the net proceeds of sale.
In exceptional circumstances if a buyer needs to sell a property in the U.K., then the seller may agree to insert a conditional clause in the comprimis in this respect but it is unusual for a vendor to agree to this but it might be worthwhile trying.
COMPLETION
Completion of the purchase will usually take place within eight to ten weeks of signing the comprimis, although a shorter or longer period may be possible if required.
The deed of sale is usually signed by the parties in the notary's office in person. Alternatively, a signature can be applied by a proxy (usually a clerk in the notary's office).
UTILITIES AND INSURANCE
If you want our assistance in dealing with the transfer of utilities and taking out insurance then we are very happy to deal with this for you although there is a fee involved.
TAX AND INHERITANCE
Such matters are always different between countries and it is strongly advised that you take advice on tax or succession matters, which will vary significantly depending upon your circumstances.
This can be obtained from either the supervising notaire or our specialist legal consultant.
There are no other costs for the buyer other than possibly the apportionment of the property tax, the taxe foncière. If the seller requires any apportionment, this will appear in the buyer's completion statement.
If you are buying a property in a joint ownership scheme (co-propriété) then there may be a service charge liability on account of joint ownership charges.
FRENCH BANK ACCOUNT
It is recommended that a buyer open a French bank account to deal with the payment of outgoings on the property. This is easily done in person in the town nearest to the property. Do not attempt to open an account by post as this will take a great deal of unnecessary time and effort.
If you have any specific queries, please do not hesitate to contact us! We are here to help.
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