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In France, buyers
pay numerous fees.
So, on top of the
net cost of the
property, there will
be notaire’s
fees (including
stamp duty) which
are usually about
6-8 per cent of the
net purchase price.
As a rule, estate
agents' fees are
included. When an
offer is accepted,
you will first sign
a legally binding
compromis de vente.
After signing, you
then have a
seven-day
cooling-off period.
The final contract
is normally signed
2-3 months after the
date of the initial
contract.
1) VIEWING
Once you have made a
selection of
properties that
might suit your
requirements, you
will be taken to
view them. Before
viewing, the agents
will ask you to sign
a document known as
a “bon de visite” to
ensure that after
the visit you can’t
reduce costs, deal
directly with the
seller or buy the
same house with
another agency.
It’s essential that
you view the
property in good
or/and bad weather.
If possible, try to
know why the owners
want to sell and how
long the property
has been on the
market.
2) OFFER OF
PURCHASE
If you want to buy a
house, you may be
asked to sign an
offer of purchase
(offre d’achat),
especially if you
make an offer below
the mandated house
price. If you make
an offer at the
asking price, the
seller is legally
bound to accept it.
When the offer is
accepted, the seller
and the buyer will
sign a contract
known as a
“compromis de vente”.
3)
COMPROMIS DE VENTE
The compromis de
vente is the
official agreement
of sale and purchase
contract, signed by
both parties to
secure the deal. The
contract will be
prepared either by
an estate agent of a
notaire. A
deposit of 10% of
the purchase price
is paid by the buyer
to the notaire
or the estate agent.
There’s a seven-day
cooling-off period
from the day after
the buyer receives a
copy of the
contract,
countersigned by the
vendor. During this
period, the buyer
can withdraw from
the sale without
penalties. After
this period, the
buyer loses the
deposit and can be
liable for
penalties.
This contract must
include main
clauses, such as a
full description of
the property,
details concerning
the buyer and the
seller, various
declarations by the
seller concerning
the title,
mortgages, etc.,
whether or not the
buyer needs a loan
for the purchase,
details of the
deposit required, as
well as details of
when and where
completion will take
place.
If the contract
contains clauses
suspensives, the
buyer may be able to
withdraw from the
purchase without
penalties.
The following
conditions should be
included in the
compromis as
“clauses suspensives”:
-
Failure to
obtain a
mortgage,
-
Failure to
receive a
planning
permission,
-
Negative results
from termites or
asbestos
surveys,
-
Right of way,
right of
pre-emption,
etc.
When you receive a
copy of the
contract, the estate
agent or the notaire
must annex a report
saying that an
inspection has taken
place and the
property is free or
not from termites,
asbestos, lead, etc.
You will need to
provide to the
notaire the
following documents:
-
copy of passport
-
birth
certificate
-
marriage
certificate
-
proof of address
-
amount of the
loan
-
names of the
buyers
The notaire
can now start the
searches on the
property (ownership,
land boundaries,
rights of way,
termites, no
pre-emption right,
etc.)
4) ACTE DE VENTE
The formalities
usually take 2-3
months. Then the
notaire will fix a
date for the
signature of the
final deed. The
notaire will ask
for the balance of
the purchase and the
buyer will send the
money directly to
his bank account a
few days before the
completion.
If there’s a
mortgage, the bank
must be notified to
transfer the funds
to the notaire’s
account. If money is
not on the
notaire’s
account the day of
the signature, no
transaction will be
completed.
The acte de vente
has to be signed in
front of the notaire
but if you cannot be
there, you can
complete the
purchase by proxy. A
person of the
notaire’s staff or
somebody else can be
appointed to sign on
your behalf.
As the property is
“sold as seen”, you
can ask for the
permission to
inspect the property
before the signature
in order to check if
the condition has
not changed since
the last viewing.
If there’s any
problem, do not
hesitate to inform
the notaire. After
the completion, the
notaire will stamp
and register the
title deed and you
will receive a
certified copy about
6/8 months after the
completion.
After the signature,
do not forget to
contact EDF (Electricité
de France), GDF (Gaz
de France) and SAUR
(compagnie des eaux)
to change the name
on the accounts and
to issue a new
contract.
5) TAXES
Houses in France are
subject to 2 state
taxes:
Rates vary from
region to region and
you will need to
contact the mairie
for more details.
Taxe foncière
is paid by the owner
of the property
(person who own a
property on 1st
January of a given
year). This tax is
payable in the
autumn, and is
divided into two
parts (tax on the
buildings and on the
land)
New houses or
renovated houses
used as your home
are spared taxe
foncière for the
first two years
after the
construction.
Taxe d’habitation
is the resident’s
tax. Even if you are
only an occasional
visitor to your
second home,
provided that on 1st
January you have
access to a
furnished property
with running water
and mains
electricity, you are
liable to pay it.
If you are renting
out your property on
this date, the
tenants are
responsible for
paying it.
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