It is a well known fact that French administration generally involves reams of ‘red tape’, and buying a property is no exception.  However, the process is remarkably straight-forward, secure and certainly not plagued by chains and gazumping.

Property transactions in France are dealt with by a notaire or public notary, who is qualified to do all the legal searches and obtain any documents required for completion. Since the notaire is French and rarely speaks fluent English, some people choose to engage the services of a bilingual lawyer as well. This can be reassuring for foreign buyers, although is by no means necessary. At A+ Properties we guide our buyers through every stage of the purchase, making sure all documents have been fully understood, and we act as a liaison between buyer and notaire. We will put our clients in touch with bilingual lawyers should this be required, especially where additional advice on inheritance and tax laws is required.
The purchasing fees in France are relatively high and are paid entirely by the buyer. The full amount is paid to the notaire from which (s)he takes his or her fee with the rest paid over to the state. These fees are determined by the state, so all notaires would charge the same.  They are usually approximately 7% of the purchasing price, although this figure rises for properties priced at less than 100 000€ and is around 2.5% on buildings under 5 years old.  If a mortgage is required, approximately another 1% should be added to cover its registration.

Buyer and seller can each choose their own notaire, thus having two notaires dealing with the transaction. This costs no more, as the fee is split, but can hinder the process a little. Completion usually takes place at the buyer’s appointed notaire’s office.

The process of finding your ideal property can be confusing and sometimes frustrating with the same property being advertised in multiple agencies, each with slightly different descriptions, photos and even prices. To make the process more time-effective and less frustrating, at A+ Properties we offer a personalised property searching service. If we do not have a property on our books that meets your requirements we contact our network of colleagues in other French agencies to find something more suitable. This costs no more for the client as it is common practise in France for agencies to share commissions.

Once you have found the property of your dreams, we submit a written offer to the vendor and negotiate on your behalf until a price is agreed by both parties. At this point we draw up a preliminary contract or compromis de vente, which is a legally binding contract signed by both parties. This contract outlines the procedures to be followed by the notaire and contains all the clauses and conditions precedent to the sale. Certificates regarding presence of asbestos, lead paint, termites etc, and for apartments the official surface area measurements, are annexed to this document. If a mortgage is being taken, a mortgage clause will also be added to protect the buyer should the mortgage application be refused.  Structural surveys are not obligatory but sometimes advisable so at A+ Properties we can put you in touch with a qualified English speaking surveyor should you decide to take one.
Once this contract is signed, the vendor is obliged to sell to the buyer at that price. A 10% deposit is put into the escrow account belonging to the agency or notaire as reassurance for the vendor. The buyer then benefits from a 7 day cooling off period, starting from receipt of a signed copy of the contract by post.  During this time the buyer is able to change his mind and have the deposit fully refunded. If a mortgage is being obtained, a clause also allows the buyer to pull out of the sale in the event of the bank refusing the application. At A+ Properties we can help you to open a bank account and find an appropriate mortgage to suit your requirements. Once the 7 days are up and the buyer still wishes to continue with the purchase, the notaire begins to gather all the paperwork necessary for completion, including clear title, easements, town planning certificate and the local authority’s agreement not to pre-empt the purchase. The notaire will usually ask the buyer(s) for a copy of their passport(s), birth certificate(s) and if applicable marriage certificate. In the event of a mortgage being taken, the buyer has 40 days in which to give written approval from the bank to the notaire, thus enabling the mortgage condition to be lifted and the sale to be completed.

Completion takes between two and three months from the signing of the compromis de vente.  Usually both parties are present to sign for completion although, if necessary, a power of attorney or procuration can be prepared in advance allowing the notaire to sign for the party unable to attend. A translator is usually employed if either party does not speak fluent French to ensure that every element of the meeting has been fully understood and charged to the party requiring their services.
On completion the buyer is officially now the owner and takes possession of the keys and obtains a paper or attestation to prove ownership. This is replaced by the title deeds which arrive around 6 months after the sale has been registered.

If the buyer is buying a new property ‘off-plan’ a reservation contract is signed between buyer and developer and a 5% deposit left. Completion of the sale often occurs before the building is finished and thereafter a strict payment schedule is followed. Notary fees are at a reduced rate of 2.5% for buildings less than 5 years old.

OWNER’S RESPONSIBILITIES
As owner of a property in France there is a legal obligation to take out an insurance policy covering the owner for personal liability, should damage to a neighbouring property be caused. A+ Properties will put you in touch with a reputable insurance broker and advise you on your policy requirements.
Every year as a property owner in France you are liable for two different taxes – taxe d’habitation and taxe foncière. The former is payable by the person inhabiting/occupying the property on the 1st January of the relevant year and is due towards the end of the year. If the property is let long-term the tenant pays this and on the year you make your purchase this tax for the year is covered by the vendor. Taxe foncière is for the account of the owner and divided pro- rata on the year of purchase. E.g. if completion takes place on June 1st the vendor pays the bill when it arrives and the buyer reimburses the vendor the equivalent of the tax from the beginning of June until the end of the year.

When buying an apartment there is often a management company in charge of the building, known as a syndic. They are responsible for the smooth running of the building and general maintenance and as such are paid fees which vary depending on the size of the building and the extras included e.g. whether there is an elevator, caretaker, pool, gardens, whether the heating and hot water are supplied by a central boiler. It is always wise to check the running costs of the building before going ahead with an offer as they can sometimes be quite high. It is also advisable to look over the minutes of the last annual general meeting as this can give you an idea as to whether any major works have been decided for the building e.g. renewing the façade or roof, which can again be costly surprises well worth being aware of.