THINGS TO BE AWARE OF WHEN PURCHASING A PROPERTY IN FRANCE

The law regarding buying and owning property in France is markedly different from the laws that govern property purchases in the UK. Prior to embarking on a French property purchase it is crucial to consider all the legal aspects of the purchase and care needs to be taken all stages during the transaction. Whilst certain procedures may seem familiar to those experienced in buying and selling property in England, French law represents a whole new aspect to the process which can, and often does, have far reaching implications for French property owners.

Although we recommend consulting a property professional with extensive experience in French law and buying French property before agreeing or signing any document, the following provides some insight into what purchasers of French property need to be aware of.

Land surrounding the property
When visiting a property, be inquisitive and ask the agent which plots of land are included in the sale. It is not uncommon to find out at the last minute that part of the lovely back garden where the stream goes is not included, or that the vendor keeps a plot of the land. It is prudent to request a plan showing all the plots of land. If the boundaries are not clearly marked by fences, ask if a "bornage" (measurements carried out by an expert) has been carried out. If not, it would be advisable to obtain this prior to signing a contract so as to reassure yourself that the property you are buying on paper corresponds to the physical reality.

If the Vendor intends to retain a piece of the land, you might also want to check his/her plans for the area. You do not want to wake up one day to find a villa being built right opposite your window and blocking out the sea view.

We can assist you in the above matters and check whether any planning permission has been issued.

The actual property
You will often find in small villages that agents will attempt to pressurise you into signing a contract on the spot, and draft the contract themselves from a pre-printed form. We strongly advise against this as each property is unique and no pre-formatted contract is suitable without amendments. We would also draw your attention to the description of the property that appears on the contract. For example, if the attic has been transformed into two bedrooms and a bathroom, check that this has been specified. You should also ensure the Vendor is able to provide you with the planning permission document and certificate of conformity, together with the invoices and guarantees for any work undertaken less than 10 years ago.

It is not unusual, particularly in the South of France, for owners to transform their garages into habitation without requesting any permission from the local council (Mairie) and also pay a friend to do the work with no guarantees. You should be aware that if this is not dealt with in the correct manner, you will not be able to carry out any work on the property and the Mairie may ask you to pay a penalty or put the property back in its initial state.

We have first hand experience of these kinds of issues and would be pleased to assist you.

Contents
Agents will often mention that the Vendor will leave various household items as part of the sale, such as chandeliers, stoves or all the kitchen equipment. You should make a note of this and ask for an individual price to be allocated to each item. This will enable you to draw a detailed inventory that will be included in the contract and will decrease the amount of tax payable on the sale. However, it is important to draw your attention to the fact that the price must be a fair and accurate assessment of the items' value.

The Vendor may also state that he/she will have the gate repaired or the electrical system rewired etc. If this is the case, you should ensure that a condition is inserted into the contract.

Who pays what and when?
It is standard practice for a Vendor to pay the Agent's commission, since the Agent will usually request the purchase price, adding his/her own commission on top unless agreed otherwise. You should ensure that the price quoted is free of commission and always check the prices quoted are inclusive of French VAT, which amounts to 19.6%, especially if it is a newly built property. However, the Purchaser is responsible for the payment of the Notaire's fees and taxes, which amount to approximately 6.5%. You are free to choose a Notaire other than that of the Vendor, in which case they will share the fees.

We would often recommend having a separate Notaire in most cases, and are able to recommend one of the Notaires with whom we work closely, which proves to be very advantageous in most cases.

Initially you will be required to pay the deposit, which usually amounts to 10% of the purchase price. However, in some cases it may be reduced to 5%.

The balance of the purchase price and fees are payable upon completion, along with the Agent's commission. You should be aware that additional charges would be incurred if you take out a loan since banks usually require a charge to be registered against the property. The Notaire will advise you of the amount.

How the transaction is organised
Once a verbal offer has been accepted an initial contract will be drafted. We recommend a Notaire draft the contract rather than an Agent, whose legal training is often lacking. It is at this stage you should make all enquiries and run all the required checks as you are able to insert any additional clauses with the agreement of all parties. You may request the sale be subject to a survey (this is not standard in France) for instance. This initial contract is called Compromis or Promesse de Vente. After both parties have signed the Compromis, you will receive a letter confirming its signing together with a copy of the contract. From this point on you will have a seven-day cooling off period.

The second stage of the transaction generally occurs 2 to 3 months following the signature of the Compromis according to an agreed date stated on the initial contract provided that all the conditions have been met and the Notaire has been able to successfully deal with all the administrative formalities. The second and final contract is called "Acte de Vente". The completion deed, or "Acte de Vente" will state again all the terms and conditions of the Compromis and confirm completion of all the conditions.

What about French inheritance law?
French inheritance law is dramatically different to that of English law, for instance children and parents have entrenched rights in France whereas in England they do not. We would refer you to our brochure on this matter, which can be requested here.

The French Department looks forward to hearing from you and wishes you luck in your French property purchase.