Monday, 9 April 2012

The French property buying process

 

Whether you are taking your first tentative steps to buying a property in France or are a seasoned international investor we thought you might appreciate this guide to the process of buying a house in France.

Viewing

 

You should only view properties through a licenced immobilier, these agencies must have a carte professionnelle as well as full professional indemnity insurance.
By buying through us you can rest assured that you are in safe hands.

Making an offer

 

The process in France is not too dissimilar to the UK and other European countries.
Once you have found a property that you like you should make an offer (preferably in writing) to the agent.
Make sure that all parties know exactly what is included in the offer and don’t forget to set aside a budget for the notaires fees and taxes.
There is no hard & fast rule as to how low your offer should be. In a “hot” market you may well need to pay the asking price, in turbulent times you may well be able to negotiate a discount.
You should have all of your financing in place before you make the offer.

Structural survey

 

As you probably know most French purchasers do not bother to have a house surveyed.
There are a list of tests that the vendor must pay for and have undertaken by professionals. This is called the Dossier de Diagnostic Technique (DDT).
Up to seven surveys must now be undertaken. These are for asbestos, electrics, energy efficiency, gas, lead, “natural or technological risks” and termites.
Most sellers wait until they have an offer agreed before commissioning the reports, some of which have a short “shelf life” before they need to be undertaken again.
If you would like a more comprehensive survey you will find plenty of RICS registered surveyors offering a service throughout France.

Legal representation

 

Contrary to popular opinion, the Notaire is not there to represent you. They represent the state and undertake planning and other searches with the local authorities.
If you want to have someone representing your legal interests there are many UK legal practices who employ French notaries and offer this service (for a fee).

Preliminary sale agreement (Compromis de Vente)

 

Once your offer is accepted and the compulsory tests have been undertaken you will be asked to sign the compromise de vente.
This will either have been drafted by the agent or notaire. It is a binding agreement between the vendor and the buyer, subject to any conditions that may be stipulated in the contract. The most common such condition is that relating to a mortgage being secured but others could include planning consent, rights of way etc.
Once signed you do have a seven day cooling off period – during which you may pull out of the transaction at any time, without explanation, but you must do this by registered letter.
You will usually pay a deposit (between 5-10%) to the agent or notaire and this will be kept in a special bank account as a guarantee until the purchase is completed.

Completion (Acte de Vente)

 

It usually takes between eight – twelve weeks from signing the compromis for the final acte de vente to be completed and ready for signature.
The signing is at the notaires office and they will confirm the final time and date a short time beforehand. Beware, the date set in the compromis is a target date and not set in stone.
You must have transferred the balance of funds in advance (make sure you shop around using specialist currency brokers). You must also provide proof that the house is insured.
Once the signing is complete you are given the keys and the house is yours.



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