A Guide2 Buying and Owning Property in France

Find the right property in the right place

Use the GUIDE2 Limousin regional info zone to check out the area you're thinking of buying in - you might be able to narrow your search based on what we can tell you about it.

Sign the Preliminary Contract

Once you have had your offer accepted, you will have to sign a Promesse de Vente or a Compromis de Vente (Compromis de Vente is the most common).  Normally drawn-up by the Estate Agent or Notaire, this stipulates exactly what's included in the price, and commits the seller to the transaction.  A deposit of 5 to 10% is required at this point.

Make sure you've made the right decision

You have the right to pull out of the sale without penalty, if you notify the estate agent of your decision by registered letter within 7 days of making the agreement.  Your deposit must be refunded within 21 days of your withdrawal. After the 7 days cooling off period has passed, if you require a mortgage to purchase the property, you have 15 days in which to obtain proof from your bank confirming you have applied for a mortgage. If your mortgage is declined your deposit will be returned.  Normally there is an opt out clause in the contract which means that if you have not obtained a mortgage within 30 days the seller has the option to pull out of the sale, however this is very rare.

Sign and accept your Mortgage Offer

When you receive your mortgage offer, you have to wait for at least 10 days before signing and returning it to your bank, but you must sign and return it before it expires, normally they are valid for 30 days.

Sign the Deed of Sale

Once the funds to purchase the property are received by the Notaire, they will prepare the Acte de Vente or Acte Authentique, the buyers and sellers meet at the Notaires office for the official signing.  Once the signing is over you are the owner of the property.  

Estate Agents Fee

Your Estate Agent (Immobilier) will normally charge between 4% and 12% of the sale price (these fees can vary), but depending on the conditions, the price of the property might include this fee.  As the buyer you will pay this fee. 

Notaires Fee

The Notaires fees are paid by the buyer, the percentage paid will vary depending on the price of the property you are purchasing.

Surveys

The seller is required to have any surveys carried out prior to sale ie for asbestos, lead in paint, wef Jan 2009 an electrical survey and depending on where you are buying a termites survey may also be required.  Please note these surveys are for information purposes only, and should be seen and signed on or before you sign the Compromis de Vente.  Once the Compromis de Vente is signed and the 7 days cooling off period has passed neither the seller or the buyer can change the price agreed.

Land Tax

Taxe Fonciere is calculated on the size of land you own and the type of land you won ie: is the land built on, is it argricultural etc.   It is paid by the owner of the property, and the tax covers the year from the 1st January to 31st December. The bill is sent to and must be paid by who ever owned the property on the 1st of January that year, the bill is normally received in September and paid on the 15th of October.  It will be necessary to reimburse the seller of the property for the proportion of the year that you have owned the property ie: if you own the property from the 15th of July you are liable to reimburse the seller the amount of Taxe Fonciere from the 15th of July until the 31st of December.  New build homes can be exempt from Taxe Fonciere for 2 years.

Council Tax

Taxe d'Habitation is charged locally and pays for things similar to those covered by the UK council tax.  Based on the rental value of the property, account will be taken of the number of habitable rooms and floor space when calculating the amount due.  Normally billed in October and paid on the 15th of either November or December.  If your property is rented out long term, this tax is payable by the tenants.  Whether your property is a holiday home, or permanent residence, you are liable to pay.

TV Licence

This fee is collected in the same time as Taxe d'Habitation, and is listed on the same bill.  This is usually around 116 Euro (as at Jan 2009 - this is liable to change).

French Inheritance Laws

These are weighted towards protecting the interests of children. If death occurs, the Spouse receives 50% and the other 50% is shared equally between the children, however, you can have a Tontine Clause added to the final contract which allows the spouse to receive 100%.  Seek professional advice from specialist solicitors in French Property Law if you have issues with this. 

The Notaire

The Notaire is a publicly appointed official, and is personally responsible for ensuring the sale and purchase is carried out properly, and that any legal clarifications are properly written into the Deed of Sale.  They represent the French Government and not the seller or buyer, and so are completely impartial in the transaction.  Normally one Notaire represents both buyer and seller, however you can have you own Notaire at no extra charge, but using the same Notaire will normally speed up the sale.

The Immobilier

The Estate Agent is instructed by the seller.  Many are geared up for foreigners buying here, and so will provide help in translating and helping you through the processes and paperwork if you are not a French speaker. The Immobilier (estate agent) will be registered with one of the following associations, FNIAM, UNIT, SNPI or CNAB.

The Vendors

Because of French inheritance laws, all family members must give written consent and agree to the sale and the price before the property can be put on the market.  All family members are also required to sign the Compromis de Vente and the Acte de Vente or Acte Authentique.