The Property Buying Process

Buying & Selling Property in France

From a barn restoration in Bordeaux, to a mazot conversion in the mountains there's many reasons why people are interested in purchasing property in France. Make sure that before you attempt the process of purchasing your property in France you are fully armed with the knowledge of how to locate, purchase and even live in it!

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The Buying Process

For many of us purchasing a property abroad is the fulfilment of a lifelong dream. The buying stage can be the most exciting part as this is where it all becomes real. You've done all your homework, you've trawled through the internet, scanned pages and pages of houses and apartments particulars and visited numerous potential property candidates before finally locating your ideal property!

It's the buying process where you will be required to sign official documentation and hand over the required cash to make the property legally yours. Buying property abroad can sometimes become a complicated process and you should note that in many countries, the process varies significantly from that of the UK. It is strongly advised that before venturing down this final route you come fully armed with all the relevant purchasing information and have completed all necessary financial and structural checks that will relate to your property. Before signing any official documentation you should make sure you fully understand the legal complexities involved in your purchase and if possible, make sure you have a solicitor that is fluent in both English and the local language so they can explain to you exactly what you are signing.

It is also worthwhile ensuring that your solicitor checks the debts against the house that is for sale as in some countires, once the house sale has been registered you could become liable for the debts.

last updated 5-Oct-2007

French Property Buying Process

So if you’ve found the perfect property in France and now want to invest? Unsure of your next steps? The following process outlines the general buying process for your French property. You must:

sign an initial contract called the 'Compromise de vente'
pay the deposit for the property
complete the sale

The Compromis de Vente
The ‘Compromis de Vente’ is signed by both parties and indicates the formal agreement to the sale of the property. Typically the document ncludes:

Details of the purchase price,
A brief description of the property,
Terms and conditions,
Conditions suspensives (where applicable); and
The completion deadline.

Although this is the preliminary contract, you should note that it is legally binding. Before signing, it is important to make sure of the following:

You understand and agree with everything in the contract,
The contract covers the full agreement of the house purchase,
Any important conditions you have specified with the vendor are included within; and
You have sufficient funds available to pay the deposit of the house to the notaire!

The Compromis de Vente is the most common form of contract used when buying a property. Occasionally, sellers may elect to use the Promesse de Vente. A promesse de vente contract offers you as the buyer slightly more flexibility as you then have an additional ‘option period’ to complete the purchase of the property or you can withdraw your offer altogether, forfeiting your deposit.

In French property law once your offer is formally accepted there are strict contractual regulations that mean you are legally bound to the property purchase. This eliminates the procedure of 'gazumping' and counter bidding which is common to the English property market. In France there is also a moral expectation that a buyer would not pull out of the deal once they has made their offer. If after agreeing the sale price for the property you have some questions about the sale you should make sure the signing of the compromise is subject to conditional clauses, known as ‘clauses suspensives’. Your questions may relate to the condition of the property, or you may wish to find out whether you could obtain planning permission and/or you may simply wish to have a survey done. A clause suspensive will allow for the contract to be cancelled and your deposit refunded if anything pertaining to the clause is uncovered during your further investigations.

Before signing, it is best to check with your notaire what paperwork you are required to bring. In drawing up the compromise, the notaire may require you to provide official documentation such as your passport and marriage/divorce papers. It may also be useful to have relevant paperwork pertaining to a loan (mortgage) you may be using to purchase the property.

During the purchase process, the notaire is required to notify the Société d’Amenagément Foncier et d’Establissement Rural (SAFER). In certain circumstances, SAFER may intervene and object the sale if they deem it necessary to protect the land you are buying. If this is the case, any deposit you have paid will be fully refunded. This type of incident is rare and generally only occurs in property and land greater than 1 hectare (2.47 acres).

The Deposit
A non refundable deposit will be paid upon signing of the completion of sale agreement. If you are not classified as a resident in France and are therefore not taxed in France, you will be required to put down a minimum of 20 per cent of the purchase price as your deposit. A lower deposit of 10 per cent is generally accepted for French residents. Included in either a compromis or promesse de vente sale contract is a seven day ‘cooling off period’ during which time the buyer may withdraw from the contract without significant financial penalty. However, if after the seven day clause you decide to pull out of the deal, your deposit is non refundable. Moreover, the deposit is held by the Estate agent (link) or Notaire (link) until the final sale completion date.

Completion of Sale
After the signing of your compromise de vente, the notaire will begin the legal process for the sale of the property. Completion of the sale can take between 2 and 3 months as the notaire has to carry out various searches similar to that done by UK solicitors. The notaire is responsible for checking existing property ownership, any outstanding debts on the property and other such matters.

The final contract is known as the Acte Authentique de Vente (Deed of Sale). In signing the Acte de Vente possession of the property formally passes to the buyer. Before the official signing of the Acte de Vente, it is important you have transferred the full balance of the purchase price, plus any notary fees and taxes, to the notaire’s bank account. As with the deposit, the notaire will hold the funds until the Acte de Vente has been signed and completed. Where the balance of your property is being paid for by the bank (ie. using a mortgage (link)), you need to ensure that your bank has paid the outstanding funds directly to the notaire in sufficient time that they clear before the signing date. The sale will not be completed unless the money has cleared the Notaires bank account. Sadly money laundering laws mean that you can’t turn up with a briefcase full of dosh!

Once the deed of sale has been signed, the Notaire will provide an ‘Attestation d’Achat’ or ‘Attestation de propriété’ that proves ownership has been passed to you, until formal registration is complete. An exemplified copy of the purchase deed will follow some time later.

last updated 5-Oct-2007