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French law does not recognise the concept of “subject to contract” and therefore an offer to purchase a property should not be made unless you are absolutely certain that you wish to purchase. You should consider all the conditions that you wish to include in the contract before the offer is made. The next step is to sign either a Promesse de Vente or a Compromis de Vente. This may be prepared either by the Notaire or the agent. Contracts are signed early on in France and contain Conditions Suspensives. These are conditions which must be satisfied before completion can take place and make the contract conditional. Until the conditions have been fulfilled, completion of the contract is uncertain. If any of the Conditions Suspensives are not satisfied, the contract is deemed to be null and void and the Purchaser is entitled to the return of his deposit. These conditions are important and need to be checked carefully; in particular the contract may need to be amended to take into account the fact that a mortgage is needed to finance the purchase. This clause cannot be added at a later date. Remember, the drafting of the contract is very important and a pre-printed form can never replace professional advice. The consequences are too serious not to ensure that advice is taken before signing the contract. French contracts are also usually conditional upon rights of pre-emption not being exercised. French law gives certain parties the right to buy in place of the purchaser (e.g. the local authority). If the right is exercised the deposit will be returned to the purchaser. Since June 2001, the purchaser of a residential property is given a seven day cooling off period (Loi SRU) during which he can withdraw from the contract without penalties. However experience has shown that whilst it gives more confidence to the purchaser to sign in haste, it makes it more difficult afterwards to renegotiate essentials terms of the contract. | ||||||||||||||||||||||||||||
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 The notary or notaire is the French lawyer who deals with property transactions. In many cases, the name of the Vendor's notaire is inserted in the contract. A Buyer should not automatically agree to this and should consider instructing his own notaire. We can assist with this. It is you as Purchaser who pays the notaire's fees, if there are two notaires involved, there is no extra cost to the Purchaser as the notaire's fees are fixed by law and the fees are shared. |
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 Following signature of the contract searches are made. The notaire will obtain the equivalent of a Land Registry search from the Conservation des Hypothèques. This search will disclose any restrictions on the vendor's right to convey title and the existence of charges. The proceeds of sale must be sufficient to pay off any charges revealed. This period allows the buyer sufficient time to raise a loan. |
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 The signing of the Acte de Vente, the final deed of sale, has to take place before a notaire. The expenses, the Droits d'Enregistrement and the notarial fees are also paid at the signature of the Acte de Vente by the purchaser. If you do not wish to or are unable to attend completion in person you can appoint an attorney to execute the Acte de Vente on your behalf using a Power of Attorney or Procuration. This document must be written in French, signed before a Notary Public and forwarded to the Foreign & Commonwealth Office where a Certificate - l'Apostille is annexed to give legal effect in France. |
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 These comprise the notaire's fees, stamp duty and registration fees. Where the property is more than five years old, these will amount to approximately 6.5% of the purchase price. These are payable in addition to the purchase price. For newly built properties, French V.A.T. - T.V.A. at the rate of 19.6% and usually included in the price is payable and in addition, notaire's fees and taxes of approximately 2% to 3% of the purchase price are payable. If a loan is secured on the French property additional notaire's fees will be payable. |
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 Set out below is a non-exhaustive list of the main expenditure you should include for your budget purposes when purchasing a French property:
(*) The dates mentioned here are for information purposes only and apply to the year 2008. They may vary from year to year. In addition, they only apply to people who reside in a European country other than France. |
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 You should also ensure that insurance of the property is arranged from the date of completion. You may wish to take over the Vendor's policy. Services: Once the property is yours you will need to apply to the French utility services for the electricity, gas, water and telephone to be registered in your name. As from the date of completion you will be responsible for the bills for these supplies. The notaire can give you what is called an Attestation, proof that you own the property, which may be required when an application is made to transfer the supplies. |
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 Once the property is yours you will need to apply to the French services for the electricity, gas, water and telephone to be registered in your name. As from the date of completion you will be responsible for the bills for these supplies. The notaire can give you what is called an attestation, proof that you own the property, which may be required when an application is made to transfer the supplies. |
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 You may also like to consider opening a non-resident French bank account from which to pay by direct debit your accounts for electricity, water, etc as post to France from England is notoriously unreliable. You will thus avoid the frustration of arriving at your property only to find the electricity has been cut off because EDF has not received your cheque. |
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 French law will govern your French property. Please ask for our separate brochure. |
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 Termites If a property is located in a region either infested by termites or at high risk of infestation, French law requires the owner to:
If a property is sold in a termite-infested region, the Vendor must supply a certificate, for the sale of his property confirming that there are no termites in order to benefit from the clause excluding hidden defects. Asbestos French law also provides that, for all properties which received planning permission before 1st July 1997, an asbestos report must be produced by the vendor for the sale of his property. The report will confirm if any asbestos has been detected and where, for example it can often be found in the insulation material used in older houses. If asbestos is found, the owners are required to inform the workers working on the property of its existence so that they wear the appropriate protective clothing and dispose of the rubbish appropriately. If the asbestos is found to be in poor condition however, the owner may be required to check its condition on a regular basis, or have an expert remove it within a period of three years. This will be mentioned in the report. If you are purchasing a property in co-ownership, you should also request to see the asbestos report for the communal parts, which should be provided by the Managing Agent (Syndic). Lead French law requires that a lead report must be issued for any property built prior to 1st January 1949 with a residential or mixed use should this property be located in a zone considered at risk. The Vendor must produce this report for the sale of his property. This report will only cover surfaces and not pipes or other hidden material. As part of the report, an expert will carry out a survey and take samples where appropriate. This report will state the presence, concentration and accessibility of lead. If it is found at a level reaching 1mg/cm3 or higher it is considered a positive reading. The lead report is valid for one year. This report will only cover surfaces and not pipes or other hidden material. Ingestion of lead (e.g. by inhaling paint flakes or dust) in high doses can lead to intoxication in young children, so if a particularly high level is found the expert may advise that the contaminated surfaces be covered or professionally stripped. Again, this information should be borne in mind where paint is renewed in areas where it was originally detected. If the property is co-owned, the communal parts should have been checked and the information should be available from the Managing Agent. Energy performance Gas fittings (boiler/pipes) Electricity Sewage system Please note that in principle all Communes with 2,000+ inhabitants must be equipped with a mains sewage system. If your system does not comply with the new rules, you will be required to improve the system at your own expense. In addition, if the Commune creates a mains sewage system all properties located in this Commune will be under the obligation to be connected to this system within two years. Water supply Loi Carrez Please note that areas of less than 1.80 m high will not be taken into account, nor will garages, parking places, cellars, terraces etc. If the surface area stated in the report is larger than that mentioned in the Compromis the excess will not lead to a price increase. However, if the surface area is found to be smaller (by more than 20%) the price will be reduced proportionally. If you would like advice or to discuss any of the matters mentioned above, or any other property related matter, do not hesitate to contact us. We look forward to hearing from you. |
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 Buy your "French dream holiday home" with a 19.6% discount, cover your mortgage costs, and end up with an asset when all has been paid! Contact French Law & Property Department Patrick Delas Véronique Cardon |
Tel: +44 (0) 20 8394 6373 
dawn.alderson@russell-cooke.co.uk |
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