Buying in France - guide
Purchasing a property in France - If you don't speak French well, it would be advisable to get help from someone who understands the system and can ask the seller pertinent questions on your behalf.
Before you sign your contract you should make enquiries about :-
- rights of way to and from the property
- was planning permission granted for building work carried out on the property?
- the septic tank and drains
- boundaries of the property
- fixtures and fitting included in the sale
- the presence/non presence of lead, asbestos and termites
You can have a structural survey done if you wish before you sign any documents. You will also need to check out land usage if the property is on agricultural land.
Compromis de Vente or Sous seing privé
When you have agreed a price with the vendor, the next step is to sign a ‘compromis de vente’ / ‘Sous-seing privé’. This is a legally binding contract for both parties that commit the seller to sell and the buyer to purchase even before any local authority searches have been carried out and often before finance is raised. If the property is a ‘copropriété’ (co-ownership) the regulations should be presented at this stage.You will be asked to pay a deposit to the notary or estate agent, usually 5% but can be 10% of the purchase price. You have one week to retract. Should you withdraw your offer after that date you will forfeit your deposit. If the seller withdraws from the contract he must refund your deposit. Both buyer and seller sign the ‘compromis’, either in the agent’s office or via the post after you have returned home.
Clauses Suspensives
are ‘get out’ clauses that must be noted on the 'Compromis de Vente'.
After this initial commitment, your notary investigates certain aspects of the property; ownership, outstanding tax liabilities and registration of title. Once these points have been settled he draws up the 'Acte Authentique' (Conveyance).
The time between signing your contract and completion – it can take up to three months – there are several things you should do such as open a French bank account, complete all mortgage arrangements, arrange insurances etc. We can help if need be.
The ‘acte authentique’
The final contract, is signed at the notary’s office by the purchaser(s), the vendor(s) and witnessed by the notary. When signed the property passes to the buyer. From the moment of signing the contract, the buyer is responsible for the insurance of all buildings on the property.
The buyer pays the balance of the purchase price and in addition, the notary’s fees. These vary between 6 - 8% for a property more than five years old and 2 - 4% for a new one. The agent’s commission is now paid.
You do not have to be present at the signing of the deed of sale and can give power of attorney (procuration) to someone to sign on your behalf.
After completion
The notary will register the change of ownership at the land registry which stamps the deed of sale. You will receive a certified copy of the title deed of the property from the notary about two months after completion. Deeds remain with the notary even if the property is mortgaged.
French property is liable to property taxes. Taxe foncière – a local land and property tax payable by the owner on the 1st January of each year. It is also payable on unbuilt land. Taxe d’habitation – is a local residents tax payable on the 1st January by the owner or if rented, the tenant, unless the property is rented out on a holiday basis.
If you decide to rent out your French property, you will have to fill in an annual income form. If you decide to re-sell your property, you may be liable to capital gains tax.
Tarn Property Services will assist and accompany you throughout Property Searches