Legal Process When Buying Property in France
Contracts, Agreements and Advice for French Property Sales
There are different legal contracts that can be used when buying property in France such as the "promesse d'achat", "offre de vente" and "offre d'achat". The "promesse de vente" and "compromis de vente" seem to be the most common legal contracts used for house purchases in France.
Legal Contracts for Buying Property in France:
- Promesse de Vente - This is an option to purchase by the owner of the French property. It is a written contract of sale agreement which legally binds together the seller and purchaser.
- Compromis de Vente - This is a preliminary sale and purchase agreement between the buyer and seller. The Compromis de Vente is a legal contract which commits the vendor to selling the property to the buyer, and also commits the buyer to buying the property from the vendor.
Once one has found the property in France, have made an offer and had it accepted, one will be asked to sign the contract and pay a deposit, usually 10% of the asking price to the notaire, with the vendor also having to pay a deposit.
Buying Property in France, the Law and Clauses
French law safeguards the purchaser of property by granting a seven day cooling-off period, which starts when written confirmation of acceptance on the part of the seller is received. After the 7 day cooling off period has lapsed, the contract is legal and binding.
The above agreements can be signed through an estate agent with a 'carte profesionelle' or a French Notaire who is an independent, publicly appointed official who has monopoly of property conveyancing matters. The Notaire is under legal obligation to ensure that you understand what you are signing, but the onus is still on you to make sure that you read everything carefully to make sure it is correct. The buyer has the right to choose the notaire but usually the sellers will want to use their 'family notaire'.
If you are unsure of anything at all, check with your notaire before signing. It is particularly important to pay close attention to the let out clauses (clauses suspensives). Advice before signing any legal contracts is of the utmost importance. Take time to read the draft document carefully before signing the contract and do not pretend to understand what is being said if you do not - rather hire the services of a translator.
It is advisable to find out about French inheritance laws and taxes as these differ from England or the USA as far as immovable property is concerned.
French Property Sales - Fees and Charges
When buying an existing property in France, approximately 8% of the purchase price will be payable for legal fees to the notaire or solicitor. For example on a property worth 200,000 Euros expect to pay around 16,000 Euros in legal fees. The buyer is usually obligated to pay the Notaire's fees and stamp duty payable.
The final legal contract, signed at the offices of the Notaire, is called the Acte de Vente. You need to take birth certificates and marriage certificates with and any outstanding monies are payable at this point.
An excellent source of free, independent advice is that of the French National Housing Advice Agency ANIL. (Agence Nationale pour L'information sure le Logement). There are ANIL offices to be found all over France.
There are also excellent websites with guides and tips on the legal process in purchasing property in France. It is also a good idea to get familiar with the terms used to describe French properties when starting off.
Interested in moving to France? The article Make a Move to France offers information on removals and immigration. The article How to Make French Liver Pate gives recipes for this French food speciality.
Buying Property in France - Contracts
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