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Are you concerned about the buying process?
No need to be! We'll help you every step of the way.
The first step: Choose your property. Generally, the only certain part of the equation is the budget! So, assuming that you are sure of what you can spend, you need to think long and hard about the type of house you are looking for - old or modern, renovated or a building project, village or isolated, etc…Have a good long look at the properties we have on offer on the web site, and then contact us to make arrangements for visits - Please don't rush the process! If, for instance, you have chosen to look at 3 or 4 properties, allow at least a few days. If you don't already know this area, come to explore and discover! (We can recommend accommodation in the area if you so require - see our Free Accommodation Offer*) If you can't find what you are looking for on the site, complete and send us an Enquiry form (which you can do on-line) or give us a call to discuss your particular project. The price advertised for all of the properties on our site will include the Estate Agency Commission; in French this is referred to as "F.A.I." (Frais d'Agence Inclus). It will not however include the French Government Taxes and the Notaire's fee which will be set out in the "Compromis" described in the next paragraph. These taxes and fee will vary but can generally be estimated as between say 7.5% of the net price of a property selling for 75 000€, and 6.35% of the net price of a property selling for 300 000€. The individual property prices advertised on the site, at the Agency and in the local press are all exactly the same - there is neither an advantage, nor a disadvantage to being a "local"!!
The second step: you have found your property, you have made an offer and it has been accepted by the Vendor(s). It is at this stage that the 'Compromis de Vente' (the Agreement of Sale) is signed and usually a 10% deposit is required, although not generally until the end of the 7 day "cooling off" period mentioned in step 3 below - now is the time to advise us and/or the Notaire (Solicitor) of any conditions or suspensive clauses you may need or require to be included in the Compromis i.e. mortgage acceptance, planning permission being granted, surveyors reports, etc), so that you feel entirely comfortable in committing yourself to the purchase. This percentage (for the deposit) is usually based on the net price of the property - i.e. the price that the Vendor will receive. We will arrange for this document to be signed, and if you have to leave France before this can be done (although it only generally takes a few days), for some strange reason, lots of you find your ideal property on the last day of your stay!) we can send the Compromis to you by recorded delivery, and you must return it in the same manner. The Compromis is in both French and English, and we are always on hand to answer any queries you may have. You may have some questions about the way in which you purchase the property, particularly if you have heard horror stories about buying your house in joint names and what the consequences might be if one or both of you die while you still own the property. Please ask us if you are at all concerned - there are some fairly simple ways of dealing with this part of the transaction as long as the Notaire is aware of your requirements. At the time of writing, there are several ways of protecting your interest, and that of your partner, which in general do not involve drawing up lengthy legal paperwork!
The Purchaser may not be given a copy at the first signing, as it may be sent on by recorded delivery.
The third step: in accordance with French Law, the Purchaser has a 7 day "cooling off "period dating from either the day he signs the Compromis if this is done in our offices here in France, or dating from the day on which he signs the receipt from the Post Office, acknowledging that he has received the Compromis at his home address by recorded delivery. If the Purchaser does not wish to go ahead then it is up to him to notify the Vendor of his intention by recorded delivery post within those seven days. This procedure is explained in the Compromis. If after the seven days of reflection the Purchaser changes his mind and decides not to buy, the deposit is then forfeited; always assuming that the conditions or suspensive clauses, if any, stipulated in the Compromis, have also been fulfilled.
The deposit will however be returned should any of the conditions or suspensive clause(s) not be realised, i.e. not obtaining a loan or building permission (for an example a pool), etc.and should the Purchaser not wish to proceed.
The Compromis can state that should the Vendor change his mind and not wish to sell, he will pay a financial penalty to the Purchaser, often to an extent equivalent to the deposit.
Finally, once the Compromis has been signed by both parties, a deposit paid and seven working days have elapsed, the contract is binding.
In the majority of cases, you will not be asked to pay over the deposit until the seven days have elapsed. At this stage you will be required to have the deposit transferred to the Bank Account of the Notaire (Solicitor) who is dealing with the transaction. As you may be aware, it is the Notaire who acts independently and impartially for both parties as a government-appointed official. So from here on in, the matter is handled by that Notaire.
* It is important to realise, by law, the Notaire is a servant of the State and his main responsibility is to see that the property transactions and title are properly concluded.
The Notaire will:
~ Hold the deposit in an escrow account (which cannot accumulate interest or be touched without client consent) and will be deducted from the amount due on completion.
~ Be responsible for the search carried out on the property, to ensure that there is no construction planned which might devalue or adversely affect the property.
~ Establish title to sell, and that there are no financial liens, i.e. a mortagage, on the property.
~ Establish whether, in the event that the property to be purchased forms part of an estate or a condominium type property, the syndicate or association concerned is owed money or has decided on any major works on the property.
~ Examine compliance with all the measurements, local regulations and regulations regarding examination of the property in respect of the existence of parasites, lead and/or asbestos.
At this stage should any of the searches reveal something important the Purchaser will normally have valid reason to withdraw from the transaction.
Once the Notaire has carried out his searches and has obtained a certificate of 'Free Title' from the Land Registry, completion can take place, and you will be required to sign the 'Acte de Vente', the final contract. In general this takes place 2 - 3 months after the signing of the Compromis. We will normally advise you of the date for completion a few weeks in advance, when we will also ask you to arrange to have the balance of the purchase price (including the Agency commission, French Government Taxes and the Notaire's fees, all of which will have already been set out in the Compromis) transferred to the Notaire's bank account, allowing adequate time for the transfer to take place, so that he, the Notaire, has that money at least a few days before the completion date. Although this can be done in your absence, by your giving a Power of Attorney to the Notaire to sign on your behalf, it is usually preferred that you attend the final signing at the Notaire's office, and in any case, most Purchasers find this an exciting day, when they are finally handed the keys of their new abode! In any case we will be there, if you want us, to hold your hand!
French Government Taxes (Stamp Duty and Registration) can vary, and are paid by the purchaser (based on a number of elements such as the age of the buildings) and these together with the Notaire's fee and the Estate Agency commission, are made by the Purchaser, therefore when, and if, you come to sell your property, you should have no further charges of this sort to pay.
Insurance
You will responsible for insuring the property from the completion date - you can either choose to continue with the policy already in place between the Vendor and his Insurance Company, or take out your own policy. If you need advice or recommendations, please ask us. We can put you in touch with Insurers for the property, as well as for car insurance, health insurance etc.
Local Property Taxes
Owner's rates/tax
- Taxe Foncière - Depends on local tax rates/value of property. Payable by the owner to the local "Trésor Public" (tax collection office - it also collects money for TV licences!) It is collected annually in arrears. You can ask us to find out the amount for the previous year so that you don't have a shock - but this is unusual as the rates in France are generally a lot lower than in the U.K. The rate is assessed on the owner of the property on the 1st January in each year although the bill does not appear until September/October, and is usually payable by the 15th October in each year. The "acte de vente" will generally contain a provision for you to reimburse the Vendor for your proportion of the current year's rates.
Occupier's rates/tax
- Taxe d'Habitation - Once again, this depends on local tax rates/value of property, and is payable by the occupier to the local "Trésor Public". The amount paid for the previous year can be ascertained easily. This tax is also assessed on 1st January, and the bill arrives in the autumn, but it is the occupier on the 1st January who is responsible for payment of the whole amount and this is not generally shared on a pro rata basis.
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