Property Trade Implementation Etc.
In the following you will get practical information how to buy a French property:
- 1. Letter of intent
- 2. “Compromis de vente” – purchase agreement
- 3. The Notary´s function
- 4. 10 days right of cancellation
- 5. Deed and date of takeover
- 6. The municipality has a pre-emptive right
- 7. Purchase costs
- 8. Financing
1. Letter of intent
Sometimes the French agency ask you to sign a letter of intent, when you want to buy a French real estate, but many agencies don´t do that. It depends!
2. “Compromis de vente” – purchase agreement
When you purchase a property you will have to sign a “Compromis de vente”.
We need a copy of your passport, birth certificate, marriage certificate and information about your assets and of course your primary address and occupation. Former names must be given as well.
If you need a loan to finance the purchase it is important for this to be mentioned in the purchase agreement and to add a clause to the contract.
By law the buyer gets 30 days to get the financing, and in this period the buyer can renege on purchase without any costs.
When signing, the buyer must pay a deposit of typically 5 to 7 % of the purchase price.
3. The Notary´s function
In France, it is the Notary who is in charge of carrying out the transaction and he is the one who prepares the deed etc. The notary represents and takes care of both the buyer and the seller's interests.
The Notary´s job is, among other things, to take care that both the buyer and seller understand what they sign. He is responsible for ensuring that the property transaction complies with the law.
Every payment has to be paid to the Notary´s office. Amounts are managed by a public bank. The Notary is covered by a professional indemnity insurance.
4. 10 days right of cancellation
If you are a private buyer, you will have the right to 10 days to cancel your purchase without any costs. The 10 days are calculated from the day you receive the purchase agreement (signed by buyer and seller and which includes a written confirmation of your right to cancel)
The purchase agreement and the cancellation information have to be sent to you by registered mail or it can be given you in person at the Notary´s office.
If you want to cancel your purchase you need to confirm this in writing to the seller by registered mail (or to the agency or the Notary if it is stated in the agreement) within the 10 days.
5. Deed and date of takeover
It may take some time to prepare a deed, a thorough investigation has to be done before it is ready to be signed.
When the deed is ready to be signed at the Notary, the buyer and the seller will be invited to the meeting. Once the deed is signed, the remainder of the purchase price will be due.
The buyer takes possession of the property the same day as the deed is signed.
6. The municipality has a pre-emptive right
In France many municipalities have a pre-emptive right to buy the property (at the same price), which of course may delay the process.
7. Purchase costs
When you buy a French property, you have to take into account additional costs amounting to about 7% of the purchase price to cover the Notary, stamp duty etc.
You can read the schemes and more or less everything regarding to taxes and real estate etc in our e-book at 52 pages for free!
E-book for Free
We have made an e-book
"The ultimate guide to purchasing and selling real estate, tax- and wealth matters in France".
You can have it for free.
Give us a call at +33 64 06 16 500 or +33 64 39 14 317
8. Financing
There are many possibilities to get a loan to finance your purchase.
Many French banks gives loan between 60 % and 80 % of the value of the property. Typical they will ask you to take out a life insurance to guarantee the loan.
Many foreign banks are represented in France widening your options.
Consumer protection rule for loan
In France there is a consumer protection rule for loan, so from the day you receive the offer from the bank you have to wait 10 days to accept the loan.
You can read the schemes and more or less everything regarding to taxes and real estate etc in our e-book at 52 pages for free!
E-book for Free
We have made an e-book
"The ultimate guide to purchasing and selling real estate, tax- and wealth matters in France".
You can have it for free.
Give us a call at +33 64 06 16 500 or +33 64 39 14 317
Helle Skovby
Real estate agent
Email: hs@helleskovby.dk
Michael Skovby Nielsen
Tax and financial advisor
Email: mn@helleskovby.dk
