Buy in France - tips
We are neither legal nor financial advisors and the buying in France guidelines are to be used as such.
Before starting to look for a property, you should consider the question of finance Buying a property in France is very different from doing so in other countries and we would advise you to get help from persons who know the system and have taken advice as to French Succession Laws before committing yourself.
Make sure your funds are available for the entire purchase and not just for the deposit unless you are arranging a mortgage. Stamp duty of approx 3% of the amount borrowed is payable on a first mortgage on the security of a French property.
Tarn Property Services can assist you to arange a mortgage if needed. We also work in collaboration with HIFX who arrange mortgages and are foreign exchange specialists with offices in the UK, Europe, North America and Australasia.
Contact HIFX on behalf of Tarn Property Services in France.
French estate agents must have a mandate to sell, stating the price and their commission which varies between 6% and 8% and is only payable on completion of the transaction.
You may be asked to sign a Bon de Visite with the estate agent before being taken to view a property. This protects the agent with whom you have initially visited the property and allows them to be paid the commission on the sale even though you may decide to purchase through another agent who may advertise the same property cheaper.
All French property transactions are completed before a notary. A notary is a public official who investigates all aspects of the relevant property, in particular ownership, outstanding tax liabilities and registration of title. You can appoint your own notary at no additional cost since his fees (paid by the purchaser), will be split between the respective notaries.
TOP TIPS when buying in France
- The best tip is to get someone who knows the French system to help you!
- Do not sign ANYTHING proffered by an estate agent (with the exception of the 'bon de visite') before getting advice.
- Investigate property-use zoning and any planned developments for the area; it is not the notary’s responsibility to do so.
- Do not use an offshore trust or company as the vehicle for ownership without first getting expert advice as doing so could give rise to some nasty tax implications.
- Get advice on French inheritance laws, which entitle your children or step children to a share in your estate whether or not you wish it and can disadvantage your spouse. Make sure you make a Will in France to cover your assets there but excluding your assets anywhere else in the world.