Just vine and dandy?
Alex is a chicken farmer from Yorkshire. He is no connoisseur of wine; but he knows what he likes. And what he would really like is to own a vineyard in the Tarn. Alex's chickens have produced a nest-egg of cash. So Alex is off to France. Now every property market is full of traps for the unwary, but nowhere are the waters more shark infested than... the French vineyard market. But Alex thinks he knows a good egg when he sees one. So he goes it alone.
‘I'll just register with a few estate agents.' Oh dear Alex. Get yourself a local viticulture estate agent on a ‘mandate de recherche' (i.e. pay an agent to find you a suitable vineyard). This may sound a crazy idea. Why pay two sets of agency fees? But be careful. Viticulture in France is a tight-knit community and anything with good ‘terroir' and yields is usually sold by discreet word of mouth. You need to be on the inside.
Alternatively you could employ one of the new English staffed web search companies based in France or a property acquisition agent such as Unique Homes France who specialise in finding specific property types such vineyards for their clients throughout France.
‘I'll use my trusty U.K. accountant.' Oh dear Alex. Get yourself a specialist accountant ('expert comptable') experienced in viticulture, preferably fairly close to your chosen vineyard, so that he will know the local tax and various government officials and be able to sort out any problems for you. You will also need advice on the vineyard accounts, yields and profitability. And of course advice on tax matters generally. Get the accountant to give you a written report; and try and build up a rapport with him. If you buy the vineyard, he will play a key role in helping you through the quagmire of administration.
Find out why the owner is selling. The prices for vineyards vary dramatically according to the age and condition of the property and the age of the vines. Those which are coming to the end of their growing cycle will usually cost at least £10,000 per hectare to replace. And the new vines will not come to fruition until at least three years after planting (take care with the cash flow). And take advice on the chosen variety of grape. Preferably one which won't go out of fashion with the ‘negociants' in the meantime. Otherwise your choice could be an expensive mistake.
‘I'll use the seller's ‘notaire' because he's impartial.' Oh dear Alex. Get yourself an independent property lawyer and instruct him in writing to protect your interests on the purchase. This way, if your ‘notaire' fails to spot a serious problem, you are more likely to get compensation (and it usually doesn't cost you any more in legal fees). If you don't do this, the supervising ‘notaire' may simply say he was administering the sale contract drawn up by the seller's agent as agreed between the parties. And you may lose out. For example the ‘cheptel mort' (vineyard machinery and stock) is free of conveyancing duties and should be noted separately on the contract. You will also need to check the ‘droit de plantation' of the land sold, which is maximum amount of land that can be put under vines on the property. Also look out for the accuracy of the amount of land actually planted with vines. Some viticulture agents in France agents have a satellite tracking system to check the accuracy of the seller's figures.
‘I'll make all the wine myself'. Fine idea Alex, but, before you do this, check whether the previous owner had a fixed term agreement with the co-operative. If you decide to withdraw, they will be entitled to a compensation payment for the remainder of the term of the agreement. This is a delicate area as it involves other members of the co-operative, who may live nearby. Try and resolve the issue before completion of the purchase to avoid misunderstandings with your new neighbours.
I'll get the owner to help me with the ‘vendange' A vineyard of course is always at some stage of the production cycle. By law in France, the last crop belongs to the owner. However if the sale takes place early in the season, the seller may prefer to pass the harvest to the buyer for a compensation payment based on his work to date (not on the value of the harvest). But Alex is right. If possible, try and complete the purchase after the harvest and arrange to work with the owner in the meantime. This would be invaluable experience.
And finally; make sure you shake hands on the deal while you're on the premises. That way, as sure as eggs are eggs, you'll drink some of the finest wines in the ‘cave'.
Philip Winter-Taylor
French property lawyers
Tel: 01233 666968
Email: wintertaylors@aol.com
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