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A different sales system in France
Buying property in France is not the same as buying property in England... or Scotland, Ireland or Wales. Once you decide that you want to purchase a property in France it is important that you acquaint yourself with the property sales system, the cast of characters involved and their various functions, and if your French is not up to scratch, find a good translator as well (Learning French). Misunderstandings at this point can lose you a lot of money... but if you get it right, you can enjoy this exciting step towards a new life (be it full-time or part-time) in France.
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Who is involved in the property sales process in France?
The people who are involved in the sales of property in France may be new to you, and they do not necessarily have a direct counterpart in the UK. Acquaint yourself with them below.
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Property sales in France - the Immobilier
This is basically an estate agent, though he or she may function differently from estate agents in the UK. (French estate agents). It may be that you have chosen to buy your property in France and complete the sales process through an immobilier, and if this is the case, expect them to be keen to help you to move the sale along, as they stand to make a considerable amount of money when it all goes through! They may also jealously guard the contact with you, as the property could well be up for sale with several other agents.
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Property sales in France - the Vendor
The owner of the property in France may, of course, be English, in which case you will have no problem asking your usual questions. But if, as is more likely, they are French, you may need to use a good translation service (Translation services). There is more onus on you to ask many of the necessary questions in French property sales, as there are no HIPS here yet, so make sure that you know the answers to essential questions such as how the septic tank (fosse septique) has been maintained (if there is one), has the house been subject to any flooding, etc. etc. ... (Septic tanks in France, Plumbing in France.)
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Property sales in France - the Notaire
The Notaire does not have an exact equivalent in the UK, but he or she is an essential part of the sales process here in France. The conveyancing must be carried out by a Notaire. A Notaire is a representative of the government in that he or she works in their interests and has no bias to either buyer or seller. This fact notwithstanding, many British buyers prefer to instruct their own Notaire rather than to share the one used by the seller... strictly speaking there should be no need for this but there is no difficulty in so doing. If you do decide to have a second Notaire it probably won't cost you any more money, as the two Notaires will share the payment between them. It may be that you can find an English speaking Notaire, which certainly makes the whole process easier. The Notaire's job is to check that the land is registered and that the property does actually belong to the vendor, and that he or she is in a legal position to sell it. (There have been disputes over ownership of property and land in France due to French inheritance laws, so this is important.)
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Property sales in France - the Lawyer
The lawyer does not have an obligatory role to play in the property sales process in France, but you may be well advised to instruct one as there are some distinct gaps in the Notaire's brief that could be a source of problems in the future. A Notaire, for example, does not offer legal advice, and will not necessarily draw your attention to any drawbacks in the contract. An English speaking lawyer can save you lots of problems in the long run, although it may seem like an unnecessary expense at the time.
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Property sales in France - the Financial Advisor
Here is another character to add to the list of those that are not strictly necessary in legal terms, but who may be of great help. There are many different ways of organising your finances when buying a property in France, and as French inheritance law is a minefield for the unwary, a good financial advisor can help you choose the safest options for your circumstances, guiding you through the complexities of tontine clauses and limited companies set up to avoid inheritance problems and excessive taxation. Worth considering, as it could save you a lot of worry, and be less expensive then a lawyer. (Savings and investments in France.)
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Property sales in France - surveyors
There is actually no such thing as a surveyor as such in France, but the work of a surveyor can be done by an architect who is registered in the French system. (Surveyors in France). Many French believe that there is no benefit and certainly no need to have a structural survey or indeed, any sort of survey performed on a property before agreeing to buy, but there are distinct advantages in doing so. Many things that are picked up by routine surveys in the UK are missed or considered unimportant in France, the theory seeming to be that if it has stood for a hundred years or more it will probably continue to stand for another hundred! This is all well and good if you are happy to subscribe to this theory, but a survey could offer a little peace of mind as well as a bargaining tool if there are potentially expensive problems ahead.
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Property sales in France – the experts
When you buy a property in France you will find that the seller has to obtain reports from "experts" on a couple of points. They have to check the property for signs of termites (pesky little creatures that eat the wood in your house and can cause untold destruction if left unchecked), lead and asbestos. If the vendor appears to be dragging his heels over these, try to hurry him up as you cannot sign the contracts until these reports are in. There is no point in the vendor doing this in advance of the sale, as the certificates have a limited lifespan and can only be done within a certain time-scale with regard to the sale. If these things are found to be present, it is up to you as to what arrangements you make with the vendor to eradicate them. An environmental report may also be required. All of these are done at the expense of the vendor, whose responsibility it is to organise them.
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Property sales in France - the buying or sales process
The sales process of property in France is also different from the system you may have been used to in the UK.
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1. The offer
Once you have seen a property that you wish to buy, you make an offer... either through your estate agent if you are using one or directly to the vendor. If the offer is accepted, a Lettre d'Intention d'Achat is signed by both parties. The price is agreed, and the amount for the deposit is set... this can be anywhere from 5-10% of the price. This document prevents the vendor from showing the house to other potential buyers or accepting another offer for 30 days, in which time a date for the exchange of contracts is set. If this does not happen within 30 days the letter is considered null and void and the house is considered back on the market.
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2. The expert reports
It is at this point that the expert reports are called for, as detailed above.
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3. Exchange of contracts – Compromis du Vente
This is when you need the Notaire. Both parties should, ideally, be present, but it is possible to do this at a distance if it's not possible due to the two parties living in different countries. When we bought our property there was a lot of frenzied faxing and emailing of documents, then posting back once signed... but it all worked out in the end! The only time that we actually had to attend the Notaire's office in person was when we did the documentation for the tontine clause, to afford protection against the extremes of French inheritance law. If there has been an estate agent concerned, then he or she will probably be present too. The deposit is paid at this point, held by the Notaire. The contract is read, and a date set for the completion. If the buyer wishes, he can include a suspensive clause, if, for instance, he needs a loan to buy the property. This means that if the loan falls through, the sale is null and void and the buyer can pull out without penalty. In the past, this clause has been abused, allowing potential buyers to pull out for other reasons, but the authorities are tightening up on this now, so if you are going to invoke this clause, do so honestly! Otherwise, in normal circumstances, the deposit is non returnable if the buyer decides to pull out after the initial seven day period is over.
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4. Cooling off period
Once the contract has been signed by both parties, there is a seven day cooling off period. During this time, either party can pull out of the sale without penalty. If, at this point, you do decide to pull out, you must notify the Notaire by recorded letter.
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5. Checking the property
The next step involves the Notaire completing all the normal checks on the property... ownership etc. If the property has more than 2,500 square metres of land, it must also at this time be offered to SAFER, the French version of DEFRA. This organisation has a pre-emptive right to buy land offered for sale... but unless the land in question is of particular agricultural value it is rare that they take up this right (Land for Sale in France). This part of the process takes around three months, but you can hurry it up if need be for the sum of around €50.
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6. Completion- Acte du Vente
The final part of the sales process in France is the signing of the Acte de Vente. This should take place in the presence of all parties, unless not possible when Power of Attorney needs to be given to the Notaire. The balance of the money is now due, along with a portion of the Tax Foncières which is worked out on a pro-rata basis depending on the date of the signature. (Tax in France.)
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And finally... the sales process is complete!
Congratulations! You have completed the sales process and are now a French property owner. This is the first day of the rest of your life.
Additional articles which may be of interest:
Buying a French Property - The Fees
Sarkozy and French property owners
Life in France
French legal services and solicitors for those with property - business or a life in
France
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About the author
Joanna Simm moved to the Languedoc area of south-west France in October 2004 having found her property through French Property Links.
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your comments...
1. A comment about the selling and buying process (added 17/3/09)...
A thing to mention that was correctly highlighted on UK TV, is the problem of agreeing to buy and who has the right to property. This may be the first buyer if the sale was agreed, even if a late buyer comes up with a better offer and pays first.
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