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Helpful tips when purchasing a property in France
The following is a useful guide to the complete novice on what to expect when purchasing a property in France
Estate Agents and Private sellers:
Some of the houses you'll see on Green-Acres are sold directly by their owners and others are sold by real estate agents. If you buy directly from the owner, the transaction is not covered by any kind of guarantee. On the other hand, when you purchase through an agency you will be protected by the French law of January 1970 which regulates real-estate agents. For their services agencies will take a commission of 4% to 10%. Prices presented on Green-Acres.com always include that fee (in the case when the house is sold through an agency). The price is said to be: "Frais d’Agence Inclus" or "FAI" which means that the agency fee is included in the price.
When you visit a property with an agency, you will be requested to sign a "Bon de visite". This is standard procedure: By signing this document you are not committing to buy the house, but if you do buy, the "Bon de visite" legally binds you to buy it through that agent who showed it to you.
Notaire Fees:
In France the buyer has to pay the Notaries’ fees (around 7 %) which are not included in the price shown. Those fees are due whether one buys directly from the owner or through an agent. They cover in fact mainly taxes:
- 10% are for the Notaries’ own expenses. These are called the Notaries’ emoluments.
- 20% cover third parties expenses (cadastre office, hypotheques, surveyor’s cost, duty stamp, etc.). These are called the débours.
- 70% are for taxes (VAT, legal publication, etc…) these are called droits payés au Trésor.
Establishing contact;
Interested in a property? Here are a few guidelines for a good initial contact:
Verify that the answer to any question that you may have is not already in the text description of the ad.
Don’t waste time asking if the property is still for sale: web sites have matured and are now able to provide you with more up-to-date information. For example on Green-Acres.com, we estimate that less than 1% of our ads are outdated. Asking a pertinent question from the first time will help you and the seller to be more efficient.
When the seller answers your questions keep him informed on your intentions or just thank them even if you are not interested by this property, you might have to exchange with that seller later for another property!
Do not make an initial offer that is way below the listed price. If it is common in the UK to start negotiating with a very low price, in France it can be interpreted as a lack of serious intent.
Prepare your house hunting trip:
You have found the house of your dream and are ready to go and visit it? A few words of advice before travelling to France:
Plan on visiting more than one house. You might be disappointed by your first choice and charmed by another one.
Take at least a complete day dedicated to visiting only. It is better not to travel and visit the same day. (What if your plane is running late? What if the very last one property seems to be the best but is a bit far?)
Be on time and if running late give the seller/agent a call.
Avoid bringing the whole family! It will be a long and exhausting day. Moreover if the agent feels that he is used as a travel agency for sightseeing purposes, he might give you the minimum service and keep his best houses for his next visitor.
Express your needs! Buying a house is a difficult choice: don’t be ashamed if you are not sure of what you want. Expressing your needs and desires openly to the agent is the best way to help him find the product you really want.
Ready to buy your dream home?
It is time for the "Compromis de vente"
You have seen the house, you like it and you have decided to buy: you now need to sign a "Compromis de vente". In France you are legally bound by that step so the compromis de vente should not be taken lightly: You pay a deposit of 10% of the purchase price at that moment and the property is then taken off the market.
When the compromis is signed:
- It sets out the detail of the property you are buying and the price, including fees
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The buyer pays a deposit of 10% of the purchase price
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The property is taken off the market
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Conditions that will allow you to withdraw from the sale are specified (example: failure to obtain mortgage, termite test failure, etc…)
Double-Check your future house:
Once the compromis is signed, a period of 6 – 8 weeks follows were all necessary research is carried out by the Notaire. Building surveys are not common in France, but you can discuss with your agent to request to have a registered builder’s opinion on the property.
This time is usually also used by the buyer to finalize any loans that may be needed to purchase the property.
You might also need advice on your inheritance provisions. Green-Acres partnered with the notaire office LBMB which can help you navigate the complexities of French inheritance law.
Final Contract, the "Acte de vente"
Once everything has been validated and the buyer's payment has been send to the notaire’s office, the final contract, called the "acte de vente" is signed at the notaire's office. The buyer pays the balance of the purchase price to the Notaire who in return pays the vender. You will need to provide at that step a copy of your birth certificate and a copy of a marriage certificate (if applicable), both translated into French.
You will then go to the property on the signing day, as the final contract has a clause saying 'sold as seen on signing date'.
Happy days!!!!
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