| WHAT HAPPENS WHEN I FIND A PROPERTY AND DECIDE TO PURCHASE? You will be presented with a “Compromis de Vente” or other similar contract. Even though there may be a translation, do not rely on this. You should also be aware that it is often what is left out of the contract which causes problems rather than what is in it. This contract is a legally binding agreement and your only opportunity to protect your interests is by having additional clauses inserted. You should have the contract carefully looked at by someone who is experienced and competent in French legal matters and whose interest is to protect you, rather than the person selling the property.
HOW WILL I KNOW EXACTLY WHAT I AM BUYING?
Ask the agent to provide a copy of a plan cadastral (official plan) showing the parcel of land you want to buy. If possible, obtain a copy of the title deed. Go to the local mairie and look at the zoning plan for the area. It will give you planning information and you may be able to find out about projects, which may affect your property.
Check where the boundaries of the property lie. If there is any doubt about this, you may wish to use a boundary surveyor to have them properly defined.
ON TOP OF MY PRUCHASE PRICE WHAT OTHER COSTS ARE ASSOCIATED WITH THE PURCHASE?
The costs associated with a French purchase can be alarmingly high. The notaire’s fee (which includes stamp duty) will be in the region of 7% of the purchase price although if you are buying new property, under 5 years old, you should expect to pay approximately 3% of the purchase price. A French Estate Agent’s fee will be 5-10% of the purchase price and in some cases even more. If you are using a loan which will be registered on the French property, there will be registration fees equal of up to 3% of the value of the loan. To this you should add the cost of legal advice in this country.
HOW WILL I KNOW WHAT IS INCLUDED IN THE SALE PRICE?
Agree with the Vendor, which contents are to be included in the sale. The vendor may remove some things, which we would consider to be fixtures and fittings.
WHEN WILL COMPLETION BE?
There will usually be a planned completion date in the contract and this is likely to be about 3 months after the Compromis is signed, in some cases even longer. Although you must be ready to complete on the planned date, you should not rely on it in any way. You should certainly not make any reservations based on it until you have been notified in writing by the notaire of the final completion arrangements.
DO I HAVE TO PAY A DEPOSIT ON SIGNING THE “COMPROMIS DE VENTE” AND IF SO WHO TO?
You will usually be asked to pay a 10% deposit. Never pay this direct to a vendor. It should go into a bank account set up for the purpose by the notaire.
AND WHEN DO I HAVE TO PAY THE BALANCE?
The balance of the purchase price must be in the notaire’s account in good time for completion. You should allow at least 10 days for the transfer of funds and allow for bank charges. If the funds are not in the notaire’s account, the transfer of property cannot be done.
CAN I WITHDRAW FROM THE PURCHASE IF I DECIDE NOT TO GO AHEAD?
When buying a property in England and Wales it is possible to withdraw from the purchase at the very last moment. The situation is quite different in France. It may be very tempting to sign the contract immediately for fear of losing your dream holiday home. However you are strongly advised not to sign the contract or any other document until it has been fully explained to you and any necessary conditions have been added. Although you do have a seven-day cooling off period after signature, this time soon disappears when you have to travel back to the UK and send a copy to your lawyer. Should you withdraw voluntarily from this contract you may lose your deposit. However, if suspensive conditions are included in the contract and there are genuine reasons why these cannot be fulfilled, you should be able to recover your deposit.
WHAT HAPPENS AT COMPLETION
Approximately three months after the signing of the contract the Notaire will draw up the final conveyance deed known as the Acte de Vente. Normally all parties are present for the signing. However in most cases it is possible to obtain a Power of Attorney, which can be signed in the UK and sent to France. There is a small cost involved in this, as a Public Notary, solicitor or occasionally the French consul must usually deal with a Power of Attorney.
WHAT IF I AM ASKED TO MAKE A PART CASH – NOT DECLARED- “UNDER THE TABLE” SO CALLED PAYMENT?
Information about this is contained in article 1837 of the (French) Code General des Impôts, which also makes reference to the Penal code. It provides that those who fraudulently undervalue the purchase price will be jailed for 3 years and fined 45,000 euros. Furthermore, you may also be deprived of your civil rights for 5 years or more. This leaves no doubt about the seriousness of the offence.
Innocent foreign purchasers may be put under a great deal of pressure by unscrupulous agents and vendors and sometimes even the notaire to make side payments ‘sous la table’. We strongly advise against this practice.
WITH THANKS TO Susan Busby MA, FRANCE LEGAL who may be contacted on Tel/Fax 01473 327759 e-mail ssb@francelegal.co.uk
Website: www.francelegal.co.uk (Where you will find lots more invaluable information)
Please note France Legal cannot take responsibility for information obtained from this or any other linked sites.
FRENCH PROPERTY BUYING GUIDE
Ask the expert:
Ian Morris explains that it IS possible, and feasible, to get pre-purchase (structural) surveys undertaken in France.
So you eventually find a property in France that you want to buy. But is it a sound proposition - and are any expensive repairs likely to be needed in the next few years ?
Many buyers in the UK get those questions answered by commissioning a survey, especially if the property they are buying is their only home - for most a major investment - and more particularly if they simply cannot afford to be faced with unexpected repair costs later. And in the UK there are plenty of surveyors to call upon.
The situation in France is rather different. The French themselves seldom bother to have a pre-purchase survey. This is due not only to their wonderful laisser-faire attitude to life but also because there are very few French professionals geared-up to undertake surveys - at least as we know them in the UK. Some French architects offer to do expertises, but their inspections are usually brief, their reports normally verbal, and invariably in French. There seems to be a strange reluctance on the part of French professionals to put anything in writing !
For my own part, and by way of comparison, I usually spend between 4 and 8 hours on a survey and my reports are invariably 15 pages or more. In the case of one large property with a number of problems the survey took three days and, according to my client, the report of 50 pages was "well worth waiting for" !
It is a fact that the law in France now requires every vendor to provide a report on lead and a report on asbestos. However, the lead report covers only painted surfaces that are likely to contain lead paint, and the asbestos report has to cover only the interior of the building, and has to say only whether certain materials are likely to contain asbestos. So neither report may be quite as useful as you had thought. In some, but not all, areas of France the law also requires every vendor to provide a report on whether termites have been found in the property: More than 50 départements are now infested with termites yet arrêtés, requiring certification, apply in only about 25% of them.
Perhaps you have a friend, or have found a local artisan, who will "look over" the property for you. This kind of inspection is certainly better than nothing, and could be very helpful, but rarely is it that same as the kind of in-depth inspection undertaken by a professional who does this on a regular basis - and who will provide you with a written report identifying future repairs as well as more urgent matters.
If the property is cheap, or is clearly in need of complete refurbishment, you may well decide that it’s simply not worth paying for a survey. Otherwise, the cost of a professional survey will almost certainly be a very small percentage of the purchase price, and a sound investment if only for "peace of mind".
With the increasing number of British buyers there is a corresponding increase in the number of qualified British surveyors undertaking surveys in France. Many of them advertise in British magazines catering for this market. You should look for a surveyor who is bi-lingual, understands French building practices, and (if appropriate) has experience of old buildings. Ask about fees, find out whether the figure quoted is inclusive of travelling and other expenses, and ask whether VAT is additional. But don’t expect to find a qualified surveyor who is able to undertake your survey instantly: Like most professionals, surveyors who are any good are likely to be busy. If time is a problem investigate the feasibility of getting a survey done with a verbal report the same day, and with a written report to follow.
Contrary to popular belief it is possible to have conditions (including a “subject to survey” condition) incorporated in the compromis de vente that you will be asked to sign when you decide to buy. Such clauses suspensives, as they are known, are not very popular with agents, of vendors, because they introduce an element of risk to the sale being concluded. Sellers are understandably anxious to get their money, and agents want to get their commission. So be prepared to be confronted with one or more reasons why you should sign the compromis without first having a survey. If as sometimes happens you are denied the option of a clause suspensive you may decide not to sign the compromis until your surveyor has given you the "all clear". Clauses suspensives cannot be inserted in the compromis after you have signed.
A pre-purchase survey is not to find reasons why your purchase should not proceed; it is to make sure you are fully aware of what you are buying - and to help you decide whether the property is suitable for your particular requirements, and budget. It will alert you to things that might have escaped your notice, or even the agent's notice, and will give you a clear idea of what repairs need to be allowed for in the future – and over what time scale. Some features of a building that don’t look serious very often are, whereas others that look serious quite often are turn out to be nothing to worry about. If you are working to a tight budget, or are relying on the fact that the property you are buying in France will not need any major repairs, a pre-purchase survey is essential.
Ian Morris is a Chartered Surveyor with over 35 years professional surveying experience undertaking pre-purchase surveys both in the UK and in France. He is the author of three books and numerous magazine articles on a variety of building topics and has been interviewed about building problems and home improvements on both radio and television.
DISCLAIMER:
Whilst every care has been taken in preparing the information on this site, it is intended only as a general guide. The information should not be relied on without seeking advice specific to you and your particular circumstances. | 
