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Buying Property in France

We strongly recommend this recent book to anyone seriously considering buying propertY in France
	Essential Questions to Ask When Buying a House in France: And How to Ask Them Mark Sampson Summersdale Publishers Paperback: 260 pages (5 Mar 2007) ISBN-10: 1840245832 ISBN-13: 978-1840245837 This book takes you step-by-step through all the questions you need to ask. Available directly from

The laws covering the buying of property in France are different from those of many other countries. The following is a simplified account of the principal points of the way things are usually carried out. There are other, less common, ways of doing things. However, since you will be inevitably using the services of a French real estate agent and a notaire (French sollicitor or lawyer) these will help you through most of the maze. You should bear in mind that the notaire does not act for either the seller or the buyer. He is a public official who ensures that the transaction is carried out legally and accurately and to give the transaction uncontestable validity. There is therefore no need for each party to appoint a notaire.

 

Step one. The sous-seing privé

The sous-seing privé is an agreement between buyer and seller drawn up by an French Estate Agent which is signed by both parties. This agreement is binding on both parties. At this point the buyer pays a deposit of at least 10% of the agreed price. This is kept in a special account at the notaire's office as a garantee until the purchase is completed or cancelled. The property is taken off the market.
Any survey or estimates of work to be done should be done before signing the sous-seing privé. If the buyer intends to take out a mortgage this must be indicated at the time of the agreement and a clause is added to indicate that the agreement becomes void if the buyer cannot raise a mortgage.
Once the sous-seing privé has been signed the notaire carries out searches to ensure that there are no imminent changes to the property (a motorway which will pass close by for example). If a 'planned nuisance' is discovered the buyer can withdraw and his deposit is returned. This takes about 6 - 8 weeks, during which time the buyer can negotiates his mortgage.
Should the buyer break the contract, the deposit is paid to the seller as an indemnity. On the other hand, should the seller break the contract, double the amount of the deposit is paid to the buyer.

 

Step 2. The acte de vente

At the end of the 6 - 8 weeks (this can be extended if both parties are in agreement), the final contract, the acte de vente is signed at the notaire's office and the property passes to the buyer, who must pay the balance of the purchase price to the notaire who then pays the seller. The balance is in fact paid to the notaire before the contract is signed. It will also be necessary to provide to the notaire before completion a copy of your birth certificate translated into French and, if applicable, a copy of a Marriage Certificate also in French.

From the moment of signing of the contract the buyer is responsible for the insurance of all the buildings on the property.

The buyer pays the legal fees and registration taxes which are about 7.5% of the purchase price. These fees are paid to the notaire on the day of the signature of the acte de vente with the balance of the purchase price.

The seller usually pays the agency's commission. If this is not the case it has to be made clear to the buyer from the beginning.

One or two points to be aware of: 

If the property has more than 1 hectare (about 2.5 acres) of land The Société d'Aménagement Foncier et d'Etablissement Rural (SAFER) which has legal right of pre-emption in order to preserve the agricultural use of the land. It rarely exercises this right, but the notaire will be obliged to notify the SAFER to give it the opportunity to object to the sale. If it does so, any agreement is null and void and you can recover your deposit.

The inheritance of a property in France is governed by French law, which does not allow you to leave your share of the property to whom you wish, even if you state this in a will. Instead there a fixed formula by which the spouse, the children etc get fixed parts. There are ways around this of course but this should be worked out before completing the purchase.

There are two local French property taxes which are both based on the property's theoretical rental value. The rates are determined locally and vary from region to region.
The "taxe d'habitation" is paid by the occupier of the French home. It is due on the 1st January and is payable by the person who occupied the property at that date.
The "impôt foncière" is a land tax which is generally payable on the 1st January of each year. This tax is even payable on unbuilt land. It may be divided into two parts, one for the buildings and some of the land surrounding it, the other for the remainder of the land. There are exemptions for some agricultural land.

 

ÓChantal Moret & Mike Briley 1999-2007