Buying a Property in France

Please read this carefully, there may be some surprises that you would not expect! i.e. who is responsible for all fees due?

An agreement is negotiated between buyer and seller and the initial contract which is called a Compromis de Vente, if prepared by the Notaire, is then signed by both parties. This is a legal document, binding on both parties and should not be taken lightly. The buyer has 7 days after the compromise has been signed, by both parties (Buyer & Seller), to change their mind.  This is known as the ‘Cooling Off’ period.

At this stage the buyer pays a deposit of a minimum of 10% of the purchase price which remains `blocked' in a special account at the Notaires office until such time as completion takes place or the purchase is aborted. At this stage the property is taken off the market.

Surveys of the condition of the property you intend to purchase by professional surveyors or 'experts' are unusual in France. It is more usual to request local artisans to give an opinion as to the condition of say the roof, or the walls and for them to give quotations for the work. French buyers would be more likely to approach an architect or 'expert' but even then it is unusual for them to be asked to prepare a detailed report as has become `de rigeur' in certain European countries. It is certainly prudent to carry out all this investigative work before signing the Compromis as once this agreement has been reached - as mentioned above - it is binding on both parties. Once the Compromis has been signed there follows a period of generally 6 - 8 weeks in which the searches are carried out to ensure that the property is not subject to any imminent environmental changes. Also during this time the purchaser will be required to resolve the financing of the purchase. These searches, and the other contractual matters are carried out by the Notaire.

The Notaire is unlike most European Solicitors/Lawyers as he is not appointed to act for either party in the transaction but as a public official whose duty is to the State. Their function is to ensure that the transaction is carried out legally and accurately and in accordance with the proper processes and to give the transaction absolute validity that cannot be contested. Accordingly, it is unnecessary to appoint a second Notaire to act for yourselves, although you may feel more `comfortable' having your own Notaire or perhaps European Lawyer to explain some of the points that arise which may be unclear as it unusual for Notaires to volunteer advice.

If the buyer intends to take out a mortgage then it is necessary for this to be declared at the time of the agreement and a substantive clause in the Compromis protects the purchaser's interests in the event that a loan is not made available. In this event, the sale does not proceed and the deposit is returned. In the event of the discovery of a `planned nuisance' through the searches, the buyer can withdraw and the deposit is returned. Should, however, the buyer break the contract, the deposit is paid to the vendor as an indemnity - conversely, should the vendor break the contract, the deposit is returned to the purchaser.

Final Contract
At the end of this period, which can be extended at the agreement of both parties, 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 vendor. It should be noted that the balance must be in the Notaire's possession 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.
N.B. Our French colleagues have informed us that translations are not always necessary, it depends on the Notaire.

Early advice should be sought in order to understand fully the complexities of French succession law, which does not allow you to leave your share of the property to whom you wish - even if you have an existing Will. There are ways of circumnavigating these laws but if you wish to leave this French property to your heirs, the cats' home or Great Aunt Mary, then it will be necessary for you to take action before the purchase is completed.

From the signing of the Contract the purchaser is responsible for the insurance of all the buildings on the property.

Fees and Commission
The buyer pays the legal fees and registration taxes which amount to approximately 7.5% of the purchase price, including any geometrist's costs that might have been incurred such as establishing boundaries, repositioning boundaries and preparing plans for the Acte de Vente. These fees are paid to the Notaire on the day of signature of the Acte de Vente and are paid as an 'all encompassing' sum together with the balance of the purchase price.

The purchaser ALWAYS pays the Agency fees, these go to the Notiare along with the legal fees and purchase price.  The Notaire then passes the fees on to the Agency.  All fees due are made known to the purchaser at the outset.