Buying
A Property In France – The Process
The process for buying a home in France is a little different
to that for buying in the UK, but should not present any problems
if you know what to expect.
This section provides an overview of the stages you will need
to go through to complete the purchase of a French property.
This example will assume you will be getting a French
mortgage for your French home, but would apply in
pretty much the same way to a cash purchase or UK mortgage.
1.
Arrange Finance
Although
you won't be able to finalize a French mortgage quote before
finding a property, most lenders will be happy to make you an
offer in principle, indicating how much they will lend you and
on what terms.
To
make sure you know exactly what you can afford, it is a good
idea to choose your lender and go through the initial application
process with them before you start making offers on properties.
2.
Find Your Property
The next
stage is to find a property you would like to buy. For a UK
buyer in France, there are three main ways to do this:
-
Contact French estate agents, many of whom
are familiar with UK buyers and will speak English (especially
in popular areas)
- Contact some of the specialist UK estate agencies
that offer French property for sale
- Look through the listings in the many UK-based
magazines and websites that offer French property for sale
Once you
have made a shortlist, pay a visit to the area and arrange to
visit each property.
You
will probably have to sign a "bon de visite" when
viewing property in France – this does not commit you
to buying the property, but means that if you do buy it, you
purchase it through the estate agent that showed you the property.
3.
Find A Notaire (Solicitor) To Conduct The Purchase
A
Notaire plays a slightly different role in
property purchases to that of a solicitor in the UK.
A Notaire's role is not to represent you directly but to take
an impartial role in the sale and to ensure that it is conducted
in a correct and legally binding manner.
The
Notaire undertakes all searches and contractual work, will normally
hold your deposit (interest-free) until the sale is completed,
and will often represent the seller (vendeur) too.
To
avoid any communication problems, however, it is wise to find
a Notaire who is bilingual in French and English,
or to retain a UK solicitor who is bilingual and familiar with
both French and English law.
Your
estate agent or French mortgage lender may be able to recommend
a suitable Notaire.
4.
Have a survey carried out
Surveys
are not customary in France in the way they are in
the UK, but you should look for a knowledgeable local builder
or architect to assess the condition of your prospective home
and the cost of any work that might need doing to it.
It
can also be wise to check for any planned new developments or
roads near to your house – visit the Town Hall and check
the zoning plan (Plan d'Occupation des Sols).
5.
Negotiate The Sale
Assuming
you have got provisional mortgage finance in place and are happy
with the survey results, it is now time to negotiate a sale
price for the property.
Although
it is perfectly acceptable to make an offer below the asking
price, it is not acceptable to make a ridiculously low offer
to start the process off with (as you might in the UK).
French
sellers often see this as a sign that the buyer is not serious
and may well withdraw from the sale process as a result. If
you are not sure, discuss your proposed offer with the estate
agent, and take their advice.
6.
Pay Your Deposit & Sign The Preliminary Contract
Once
you have agreed a price, you will have to pay a 10 per
cent deposit from your own funds, normally to the Notaire,
who will hold it in trust until the sale is completed.
You
will also have to sign the "Compromis de Vente"
– an initial contract stating your intention to buy the
property subject to approval of your mortgage finance.
You
cannot withdraw from now on without losing your deposit, unless
your mortgage is refused and you have tried and failed to obtain
alternative financing.
7.
The 7 Day Cooling-Off Period
French
law requires a 7 day cooling-off period following the
signing of the Compromis de Vente. During this period both parties
can withdraw without penalty and deposits will be refunded.
You
should also now seek to get your mortgage offer finalised, while
your Notaire will begin to draw up the final contact –
the Acte de Vente (Deed of Sale).
8.
Searches and Contractual Preparations
As
with UK properties, a number of legal searches
now need to be carried out to confirm the ownership of the property
and whether it is free from encumbrances – debts or other
charges on it.
This
work will all be carried out by your Notaire, and will typically
take 10-12 weeks.
9.
Completion
Once
the searches have been completed, your mortgage offer confirmed
and accepted and the Acte de Vente (Deed of Sale/Contract) drawn
up and approved, you can complete the sale.
Your
Notaire will arrange for the transfer of funds
and the signing of the contract by both you
and the seller in the presence of the Notaire. The property
will then be yours.
As
soon as the property is complete, you will be required to have
valid property insurance for it – most mortgage lenders
will also offer you this with a new mortgage.
10.
Fees & Taxes
Following
completion of the sale, the Notaire's fees and all applicable
taxes will need to be paid.
These
usually total around 10 per cent of the property's purchase
price, which you will pay to the Notaire in a lump sum. He or
she will then ensure that all taxes and other costs are paid
to the correct parties.
The
Notaire will then register the Deed of Sale with the French
Land Registry, completing the transaction.
Read
On
•
Introduction
• Buying
A Property In France - 4 Easy Steps
• Should
I Get A UK or French Mortgage?
• Getting
A Mortgage In France
• Other
Things To Consider Before Buying In France
• Glossary
of Key French Property Terms
Buying
Overseas Property and Mortgages
