|
|
|
|
|
|
 |
|
|
Our summary of the French property buying process...
When you have found your property and the price is agreed, you will enter into an initial contract, known as the compromis. This can be drawn up by an authorised estate agent or by a French notary (known as a "notaire"). It is recommended that buyers take independent legal advice at this preliminary stage on the contract and French inheritance law which is quite different to other countries (we can suggest UK lawyers specialising in French property law).
A survey is also advisable and the buyer can request a clause that the initial contract be made subject to the survey. Note that there are statutory surveys (asbestos, lead, termite), the responsibility of the vendors, carried out as an additional protection for buyers.
On signing the initial contract a deposit (usually 10%) is paid, normally by bank transfer to the client account of the notaire. As the preliminary contract commits both buyer and seller, the house buying process is generally straightforward, particularly as it tends to eliminate 'gazumping'. However, under French law buyers have a release period of seven days from the initial contract during which time they can withdraw.
Ideally buyers should have their funds available or borrowing agreed before house hunting but the contract can allow 30 days from the initial contract to obtain a mortgage - allowing the buyer not to lose the deposit if he can provide written proof that the mortgage application has been declined within this period. Buyers raising a mortgage are recommended to check that this clause is contained within the initial contract.
Following the initial contract, the notaire will work on the main contract, pay the related duties and registration fees and prepare the further documentation, particularly the Deed of Sale, known as the 'Acte de Vente'. It is common practice for the notaire to be one whom the agent works with regularly, or a notaire nominated by the seller.
Signature of the final 'Acte de Vente' completes the purchase and it is signed in the presence of the notaire who is responsible for preparing the property title deeds. Prior to the signing of the 'Acte de Vente' the notaire will ask for the final funds to be transferred to his client account. The funds must arrive in the account on time to enable the signing to take place. The period between signing the initial contract and the completion (signing the final contract) is on average about three months, rarely less than two.
Special note: buyers who cannot visit France for the final signing should arrange a power of attorney so that the contract can be signed on their behalf. It is normal to give this power of attorney to the notaire and he should be advised as early as possible so that he can arrange to send you the relevant papers for you to sign and return.
It is the buyer's responsibility to pay the notaire's costs. These, including the notaire's fees and the duties and registration costs, amount to approximately 3% of the purchase price for new properties and on average about 6 - 8% for older properties (these fees will vary, being on a sliding scale related to the property price). If the notaire has to register a mortgage there will be an additional charge and this will vary according to the amount of the mortgage, the lender, etc., but could amount to a further 1 - 2% (obtain advice from your mortgage specialist). The notaire costs are the main additional cost in the French buying process but you will need to budget extra for an independent specialist lawyer to advise you.
|
|
|
|
|
 |
|
 |
|
|
|
|
|
|
|
|
