The Property In France Is Then Yours

Category: Finance, Real Estate.

Buying a property in France is a significant financial undertaking.

When you first inquire about a property on the 1st for French Property website you ll be put in direct contact with the French selling agent. Knowing how the sales process works and what factors need to be taken into consideration when buying French property is therefore vital if you are to be successful in your quest. They will answer all of your questions in English( or French if you wish to conduct business in French) , and assist you to arrange a viewing of the property. You will be required to sign a Compromis de Vente, which is the pre- contract agreement detailing the conditions of sale, price agreed and clauses that the transaction is subject to. If you decide that you wish to buy a property, the agent will normally request a 10% deposit. It is at this point that you should request inclusion of clauses to enable you to withdraw from the transaction if circumstances do not favour you.

The Compromis de Vente. For instance, if you fail to obtain a mortgage, fail to receive specific planning permission, or if the home fails on significant survey points, then inclusion of these clauses will render the transaction null and void. The Compromis de Vente is a legally binding contract, and so it is strongly recommended that you seek professional advice before signing. Normally, it takes 3- 4 weeks for the Compromis de Vente to be written, and the agent will require a copy of your passport along with any marriage or divorce papers. The document is normally written in French, so again it is strongly recommended that you have it professionally translated. Upon signing the agreement the 10% deposit becomes due. The notaire is an official employed by the French government to record and oversee the transaction.

This is paid to the notaire. A 7- day cooling- off period then ensues, during which time you, can withdraw without, the buyer penalty. You can still withdraw at this point, but unless you do so in line with the clauses in the Compromis de Vente then you will lose your 10% deposit. After the 7- day period expires, the Compromis de Vente becomes legally binding. Before Completion. It may also depend upon how long it takes you to obtain a mortgage.

It normally takes an additional 4- 8 weeks to complete your French property transaction, although this will vary depending upon the complexity of the sale and the type of property you are buying. Before completion can happen, the searches on the property need to take place. Searches to be performed include rights of way, land boundaries and ownership. You should appoint a solicitor to handle this on your behalf. Surveys can also be undertaken at this point including a full structural survey through a professional surveyor, which you will need to appoint should you wish to have a UK- style survey performed. This will help you to get the most out of your foreign property purchase and avoid being stung by heavy costs in the future. You should also seek professional tax planning advice at this stage.

Completing the purchase of your French Property. It is important to have the 90% purchase balance already transferred to the notary s account prior to the completion deadline. The signing of the final contract will take place at the notary s office in France. If the balance is to be provided through your mortgage lender then it is imperative that they understand when and where the money must be paid to before the completion deadline. If you cannot be present then you can give power of attorney to a nominated person to sign on your behalf. On the day of signature, the selling agent will take you to view the property before signing so you can be sure that everything is in order.

The property in France is then yours! In France, the buyer pays all of the costs involved in the transaction. Costs of buying in France. The selling agent s fee, which is often included in the price of the property, will typically amount to between 7% -8% of the purchase price, although this does vary from agent to agent. Additionally, if you appoint a solicitor or lawyer then you should expect to pay them the equivalent of about 1% of the property price to cover their costs. The notaire will also levy a charge of 3% of the agreed purchase price for their services. There is also transfer tax of around 5% on old- style properties to consider and annual taxes levied at the owner each year by the government.