The complete guide to BUYING A PROPERTY IN FRANCE Buying property in France may appear to be a complex and daunting task, particularly if you do not speak the language and do not know how the French legal system works. Allez-Français was founded in 2002 and are an experienced team based throughout South West France helping people buy and sell property in the Poitou Charentes, Aquitaine, Limousin & Midi Pyrenees. Our principal aim is to take the stress and strain out of the buying process, by offering a professional and comprehensive service from the moment you make contact with us through to the day you are handed your keys (and even beyond). We are paid commission upon the completion of a sale, which is included in the advertised price, so there are no extra charges for our services. In order to offer you some initial help and guidance we have outlined some of the main points to be aware of when buying property in France. We are also very happy to explain the purchasing process for French property in more detail when we meet you face-to-face.
A FEW POINTS TO CONSIDER As soon as you have contacted us to express an interest in viewing one of our properties we will spend time talking to you to identify your requirements in more detail. The type of information which is helpful to us is as follows: Is this a holiday home or main residence? If your purchase is to be a main residence will you be working, if so where? If your purchase is to be a holiday home are you looking for somewhere to use in both winter and summer or one season only? If this purchase is to a holiday home, what are your intended hobbies whilst you re here walking, cycling, swimming, paragliding etc. Have you pin-pointed an area or are you flexible? How often do you intend to visit your property and how critical is fast access? How many people does the property need to sleep? Are you prepared to undertake any renovation work or are you seeking something ready-tomove- into? What type of property are you looking for a house for family and friends or perhaps a lowmaintenance apartment? What style of property do you like are you a fan of traditional stone houses or is a more contemporary style more to your taste? Have you visited the area before or is this your first time? What is your total budget bearing in mind that you will need to pay Notaire s fees as well as the sale price of any property purchase? Are your finances in place is your cash deposit in place, have you spoken to your bank or a French lender about a mortgage or is this a cash purchase? Do you need your property to generate a rental income is this purely an investment purchase or business combined with pleasure? Have you previously visited local properties with a view to purchase? Once we have discussed your search criteria we will have built up a comprehensive view of the type of property and locations that are most likely to suit your needs. This will allow us to propose a range of suitable properties which could include properties or areas that you have not previously considered. Our aim is to ensure that we spend constructive time together to find you the perfect property for you.
VIEWINGS The best approach to any viewings is to keep an open mind and be flexible. An agent should always accompany you to viewings and you should expect to spend a day or a half day visiting properties suited to your requirements. Too many clients waste valuable time trying to view too many properties with too many agents. Sometimes, less is more! In advance, your agent should also provide an agenda for the appointments so that if you need regular breaks or have special requirements they can be accommodated. Before you leave the UK we will arrange somewhere convenient to meet for our appointment. This will either commence depending on which location is the most convenient for us all. On some occasions the vendors will be present during viewings and on others we will have the keys to access the properties. It is always best to expect that someone may be home and as a courtesy try to avoid bringing any non- buying passengers with you. Some businesses based in the UK will simply make appointments for you with a number of different French estate agents. This sounds fairly straightforward in principle but it does mean that you have no opportunity to speak to the person conducting the visits before your arrival. It also means that you have to ensure that you find your way to different estate agencies in different areas on your own and on time to keep your appointments. The same came be said for viewing with some of the large national agencies in that you think you will deal with one contact, but end up meeting several commercial agents.
YOUR OFFER If you decide that you would like to buy one of the properties we have viewed together, the first step is to put your offer in writing, (even by e-mail), regardless of whether it is at the full asking price or a negotiated price. There is no hard and fast rule concerning negotiation in this part of France and certainly no standard decrease to be applied to the property sale price. We will always provide guidance to help secure you the property at a price that both buyer and vendor feel is fair. Once your offer has been accepted the vendor will countersign your offer letter and we will instruct a local notaire (French notary) to handle the sale. However, until the vendor has signed the first sales contract or Compromis de Vente, they are not bound to sell you the property. If another buyer appears with a better offer afterwards, the vendor is able to accept that offer. If a buyer offers the vendor the full asking price of the property the vendor has to sell to that buyer, even if he or she receives an offer over the asking price from another client, BUT, you do need to have both signed a promesse d achat, rather than have just verbally agreed the deal. Once your offer has been accepted the vendor will normally countersign your offer letter, and we will instruct a local notaire to handle the sale. Therefore the safest way to secure your property is to ensure that you are in a position to move quickly with your deposit and paperwork before you come to France or make an offer.
THE NOTAIRE A Notaire is a public official acting on behalf of the French government. He or she is tasked with drawing up contracts, checking documents and ensuring that the sale proceeds legally and without error. The Notaire is also responsible for ensuring that all relevant taxes are paid to the French government. They act entirely impartially and represent the interests of both the buyer and the vendor. They are there to ensure that no costly mistakes are made and the buyer and vendor perform the purchase or sale without risk. In general many vendors will request the Notaire through whom they bought the property from to handle the sale. This does often makes sense as the Notaire will have prior knowledge of the property. As a buyer you have the right to request your own Notaire at no extra cost, although two Notaires involved in the same sale can complicate the process. During our time working in the region we have handled sales with a number of highly professional and trustworthy Notaire who speaks excellent English.
THE FIRST SALES CONTRACT Once the Notaire has been selected the first sales contract, or Compromis de Vente, will be drawn up. This is the first stage of the sale. As soon as the vendor signs this agreement they are bound to sell you the property at the agreed price. Buyers are not immediately committed to the sale upon signing and have a 10-day cooling off period to withdraw from the purchase without penalty. This is the point at which you will pay your deposit. The 10 days will only start once both buyer and vendor have signed the compromis de vente and you have been officially notified of the start of the cooling off period. This system works extremely well and prevents a sale chain from building up. Once the vendor has signed the contract they are unable to accept a better offer from another buyer, so the problem of gazumping does not occur. Likewise, the vendor is protected because the buyer has committed to the sale and cannot attempt to renegotiate the price closer to the time of purchase. Your deposit is likely to be 5-10% of the sale price of the property, therefore before coming out to France on a buying trip you should ensure that you have this money readily available. The deposit will be held by the Notaire until the sale is complete. If you choose to withdraw from the sale without a pre-agreed or valid reason beyond your 10-day cooling off period the deposit will not be returned to you.
THE COMPROMIS DE VENTE The compromis will set out the terms of your agreement with the vendor and will typically cover the following type of information: The personal details of the buyer and the vendor The exact address and a detailed description of the property Statements confirming whether or not there is any asbestos or lead in the building (see reports information below) In the case of apartments, a statement confirming the exact surface area in m² (see reports information below) Whether the sale is to be funded by a loan, the proposed loan terms and timings for the loan application The agreed sale price of the property The Notaire s fees and taxes to be paid If a loan is to be used to fund the purchase, the estimated loan registration costs Any additional costs to be paid, such as outstanding building or monthly charges in the case of an apartment The value of the deposit required The presence of any servitudes or rights of way which may affect your decision to buy the property Any get-out clauses clauses suspensives, which enable the buyer or vendor to withdraw from the sale without penalty e.g. the sale is dependent upon planning permission being granted or a loan application being approved A provisional completion date and the latest date the sale can complete Additionally a number of reports will be attached to the contract. The vendor is responsible for organising an independent expert to check the property and provide signed reports to cover the following: The presence or otherwise of asbestos in the property The presence or not of lead (older properties only) The presence or otherwise of termites in the property An energy performance report on the property A detailed electrical report on the property A report on gas (if used) in the property Exact square metre surface area of the property (flats / apartments) A report concerning the conformity of the fosse septique (if applicable) A local risk report, which shows the risk to the property of natural hazards such as avalanche, flooding, earthquakes etc.
PRE-PURCHASE SURVEYS In France it is not normal to have your property surveyed before completing the sale. However, a Compromis de Vente is legally binding and by signing-it you agree to buy the property as seen. For peace of mind, some people prefer to pay for a survey from a qualified and insured building surveyor. Some English speaking surveyors in France specialise in French building and architectural issues - you will find a list via the Royal Institution of Chartered Surveyors. Realistically, a full survey is not always feasible within the 10-day cooling-off period, but it is sometimes possible to put a subject to survey type clause in the Compromis. This clause can only be added with the vendor s agreement. If the vendor won t agree to an appropriate clause suspensive, and if you can t be sure of getting a survey done (or at least getting a verbal report within the 10 day period) and later withdraw from the purchase 10 days after signing, your deposit will be lost. THE FINAL SALES CONTRACT Once both parties have signed the first sales contract the Notaire will verify all the details and draw up the Acte Authentique de Vente, or final deed of sale. This process normally takes 2-3 months to complete. If you are funding your sale with a French mortgage then it will most likely to take a full 3 months, due to the timings of your mortgage application and loan approval process. The Notaire spends this seemingly quiet time performing the following type of searches: Confirmation that the vendor is indeed the legal owner of the property and entitled to sell Confirmation that all the existing property owners have given permission to sell the property (in the case of husband and wife, siblings or family members and so on) Searches to confirm the land boundaries and check any rights of way or servitudes Where extensive works have been carried out on the property, searches to ensure that full and correct planning permission was obtained from the local authorities and that the works completed conform with local building regulations Confirmation that the local authorities have waived any priority rights on the sale In the case of a property with tenants, confirmation that the existing tenant has waived his or her priority rights on the sale In the case of a purchaser requiring a loan, the Notaire will liaise with the bank to confirm their approval for loan and timings for the release of funds During this period it is important that you discuss your inheritance requirements with the Notaire. Your personal family situation will govern the nature of the final deed of sale and your requirements will be taken into account. We deal with a number of local English-speaking notaires to handle our sales and you will be able to discuss your inheritance wishes directly with the person drawing up the final agreement. Once all the searches are complete the Notaire will be able to issue the final deed of sale and propose a firm date for the signing. Both buyer and vendor are entitled to receive a copy of the agreement before the meeting, which will be set for a mutually convenient time (as long as the date of the final signing falls within the time limits set in the compromis de vente). At this point the Notaire will also confirm the final balance due in order for the sale to complete, so that buyers can organise any money transfers to arrive in time for the signing.
THE FINAL SIGNING Before attending the final signing it is normal in France to revisit the property, to ensure that it is in the same condition as when you agreed the purchase and to check off any items that are being left behind. Your agent at Allez-Français will accompany you on this visit and it is a useful time to meet the vendor and run through how any equipment or the utilities work. The signing will take place at the Notaire s office. The Notaire will read through the deed and explain the meaning of its contents. Any clarifications required will be raised at this point. We work with some very good Notaires who are able to explain and address any queries in English during the final signing. Your agent will also attend the final signing with you. Most of our clients like to come to France for the final signing however it is not always possible, in which case you can grant the Notaire, a parent or a friend power of attorney to sign the final deed of sale on your behalf. You should let us know well in advance if you would like to complete by power of attorney, as additional paperwork will need to be drawn up. Before the signing you should ensure that the final balance has arrived with the Notaire, otherwise the sale cannot complete. Funds can be transferred to the Notaire s bank account by international transfer and a currency transfer specialist will enable you to this at the best rates possible if the balance is being sent from a non-euro account. Once both parties have signed the agreement the Notaire will issue the buyer with a certificate of sale as proof that you are the legal owner of the property. Then it s time for the vendor to hand over the keys - and to celebrate!
TYING UP THE PAPERWORK Before you receive your full copy of the deed of sale the notaire must register and publish it with the authorities. This can take 6 months to complete. In the meantime the certificate of sale given to you at the end of the final signing will enable you to provide proof of purchase when required. Once the purchase is fully registered the original sales deed will be held by the notaire and you will be sent a copy for your records. If you are buying a property in a co-ownership (e.g. an apartment) the Notaire will inform the management agent of your identity and contact details. Once the final signing is completed the vendor will terminate their insurance policy on the property. You will need to take out a policy to cover you from the same date. Your Allez-Français contact will be able to recommend an English-speaking insurance partner and arrange a quote for you well in advance. Buyers are liable for local taxes and usually there is a pro-rata refund of Taxe Foncières to the vendor on the day of the final signing. The Notaire generally deals with the refund with the final balance, although sometimes the tax refund takes place after the final signing. It is sensible to open a French bank account to pay for utilities and local taxes. Once the final signing is complete you should inform the relevant utility companies of the change of ownership and provide the final meter readings as well as your contact details for future correspondence.
FINANCES Before travelling out to France you will need to have a good idea of your available budget. You should have finances in place to fund a deposit of 5-10% of the sale price of a property. The deposit is paid once the first sales contract, or compromis de vente, has been signed by both the buyer and vendor. This should be anticipated to be due within 2 weeks of your agreement to purchase the property. As well as the sale price of the property you should take into account Notaires fees and taxes when calculating your budget. In the case of resale properties, Notaire s fees and taxes generally amount to 6-8% of the sale price of the property. They are calculated on an official published scale which is used by all the Notaires in France. The Notaire s fees and taxes are not due to be paid until the sale completes and they are confirmed by the Notaire at the same time as the final balance. If you are funding your purchase with a French mortgage there will also be a mortgage registration fee. This varies according to how the French loan is secured. The company supplying your mortgage will confirm this fee to you before you agree to the mortgage. Overseas buyers can expect to borrow up to around 80% of the value of the property through a French mortgage. Most banks will not lend on more than 80% unless you are making a full time move to France. Some banks or mortgage lenders will also lend on the Notaire s fees and some will provide buy-to-let loans. French mortgages are generally more competitive than those obtained in the UK, with lower interest rates. Overseas buyers can now borrow over longer periods, so it is always worth comparing the cost of a French mortgage to an offer from any UK lender. The first sales agreement (compromis de vente) will list an agreed schedule for the mortgage application and if you do not meet the dates in the contract the sale and your deposit are at risk. Once you have made the decision to purchase a property you may need to buy and transfer money between the UK and France. You can use your local bank, although with the commissions and transfer fees charged this is generally seen as an expensive way to do it. We would recommend that you speak to our foreign exchange specialist to handle the transfers, as they are able to advise on the best times to buy currency and charge no fees, commissions for their services. If you need to make regular payments, to cover French mortgage repayments for example, a currency specialist will be able to fix a euro exchange rate over a 12 or 24 month period so you know exactly what your sterling payments will be regardless of any market fluctuations.
At Allez-Français we believe that you should be able to rely on your agent as a trusted partner, who is there to take the headache out of buying property in France. We are there to ensure that everything proceeds according to plan for you. We will take a comprehensive view of the type of property and locations that are most likely to suit your needs. This will allow us to propose a range of suitable properties which could include properties or areas that you have not previously considered. Our aim is to ensure that we spend constructive, quality time together to find you the perfect property for you. Prior to any viewings, we will arrange somewhere mutually convenient to meet for an appointment. Here you will be required to sign a Bon de Visite a standard form, acknowledging that we have introduced you to the properties that you visit. Where possible, we will travel with you by car to talk you through the areas that we are visiting and to help direct you to the next property. It also provides an opportunity to ask any questions which may arise during the course of your visit. For currency transfers we recommend a currency exchange specialist and we have known them for over 10 years, so can be very confident of their service standards. You could save 10,000 compared to high street banks when buying a property worth 200,000 by using Foremost Currency We use France s No 1 mortgage broker and the leading French lender to arrange loans for our clients. Beware that some intermediaries at other brokers does not provide the personalised service you require and delays and mistakes arise. When you are using a mortgage to fund your purchase timings are important. Our choices will often have access to deals that are not available to the general public. For further advice Call +33 (0)5 55 28 46 40 Skype allez-francais E-mail sales@allez-francais.com Facebook www.fb.com/allezfrancaisproperty We just wanted to say how Tony & I appreciated your excellent service, a rare thing in France! Your approach was professional, friendly and efficient and more importantly, achieved a sale! Your communications were excellent throughout the process and we felt relaxed in letting you deal with all matters. A big thank you to you & Bridget and we shall certainly recommend your services. A & T McG Catherine and I wanted to send you an email to thank you for your services and assistance with our recent apartment sale. From the outset you were easily contactable, quick to respond, clear in your advice, helpful and crucially extremely pleasant to deal with. I would and will recommend you to anyone I know who is selling, or wants to buy, property in France. We wish you all the best with the continued success of your business and thank you once again for your services. JC An extra bonus! For clients who purchase at a price in excess of 250,000 we offer the choice of a hot air balloon flight or a self-drive classic car experience, driving a romantic 2CV, Morgan, MG or Metropolitan. Be part of the extra service offered by the Allez-Français team, and enjoy a unique experience to start your new French adventure!