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Some things you need to know about buying a property in France.
Having decided that a particular property is the one for you, it
is time to make a verbal offer. Caution is needed here, as there
is a huge difference in culture between France and the UK. Making
a "cheeky" very low first offer will almost certainly
result in you losing that property. Either because the owner, pride
dented, will refuse to sell it to you at all, or another buyer will
step in with a sensible offer. Rarely, will you be able to re-negotiate.
Take advice on board, both from the estate agent and us. The estate
agent will be on a commission reward... the more they achieve for
their seller, the better for them. They may, however, need the sale
to go through quickly and will temper their natural inclination
to hold out for the highest possible offer, with their need for
turnover. Do not forget, that they may also be in possession of
knowledge that you are not, particularly if the vendor has intimated
to them that a quick sale is needed.
It should be noted, that if you make an offer at the asking
price, then the owner is obliged by law to accept it.
Obviously, as we work for you the buyer and not the seller and
we are not reliant on commission, we will do our best to advise
you of the lowest price we believe is achievable to clinch the sale.
The Compromis de Vente is the first of the legal stages of buying
a property in France. It is a written contract of sale agreement
which legally binds together the buyer and seller whilst the Notaire
conducts their searches. Importantly, the agreed price is frozen
and cannot be raised by the seller. This is why gazumping is not
possible in France. The Compromis de Vente should state clearly
the key points of agreement between the parties including:
Personal Details - both the buyers' and sellers' details,
such as address and other contact details, proof of identity (passports),
marital status with accompanying documentation
Title - confirmation of the name and ownership "Title"
details of the property including a description of the property,
its plot reference and map of the plot as it is recorded in the
Land Registry. This is normally done by the seller producing a
cadastral plan - a local property map showing the land division
of the area in numbered parcels - normally held by the local mairie.
This cadastral plan should be attached to your copy of the Compromis
de Vente
Sale Price - the agreed price and whether or not this
includes any contents. A separate inventory of items to be included
in the price must be attached to the Compromis.
Deposit - The deposit agreed (usually between 5% and 10%
to be held either by the Notaire or estate agent (if bonded).
See estate agents in France above.
A definitive statement describing the circumstances under which
the deposit may be forfeited by the buyer
Reports - results of the obligatory lead, asbestos, termite
and energy efficiency reports that must be provided by the vendor.
Please note that these reports are not all required for every
property (new-builds, for instance). Their necessity will depend
on the age of the property and where in France it is located.
Should any problems with the property be brought to light in
these reports, now is the time to negotiate with the seller as
to who will be responsible for putting whatever is wrong, right.
In addition to the vendor agreeing a timetable for the remedial
work to be carried out, it is essential to agree at this point,
who will be paying for it - you, or the seller. If you manage
to negotiate the price lower to accommodate a set cost for this
remedial work, well and good. If the seller agrees to carry out
the work at his own cost, you will need to ensure that any such
agreement is contained in an amendment to the compromis, by way
of a Clause Suspensive (see below).
Something missed at this stage could be very costly later.
Clauses Suspensive - these are
clauses added to the Compromis de Vente, any breach of which will
render the sale agreement void and are inserted by whoever is
drawing up the document (Notaire or estate agent)
Some of these Clauses Suspensive are standard (e.g. that there
are no other claims to the Title; that the searches to be conducted
by the Notaire's office do not reveal any problems that could
cause you to withdraw your offer etc).
The buyer can also can negotiate the insertion of additional
conditions. For instance, if you require a mortgage to complete
the purchase and your lender refuses a mortgage, then if you have
listed this financial arrangement as a Clause Suspensive and it
is accepted as such by the seller, you will be able to walk away
from the sale and get your deposit back. Providing, of course,
that you have written proof (in French) that finance was refused.
Fees - Full details of the estate agents fees must be
included
Cooling-off Period - Once both parties have signed the
Compromis it will usually be sent to your home address by recorded
delivery. You have 7 days to consider your purchase decision,
after which the buying process grinds on. Should you get cold
feet, it is essential to withdraw from the purchase within this
7 day period and that means getting notification to the estate
agent and Notaire in writing by recorded delivery.
Completion Date - the target completion date will be inserted
into the Compromis and is likely to be some three months from
the date of signing. It should be noted that this date can be
changed, providing the seller and buyer agree or if the Notaire
requests it because they have not completed their work. Unfortunately,
if you fail to complete on the due date without agreement of all
parties, you will lose the property and your deposit if the reason
for doing so is not contained within a Clause Suspensive.
This is the final legal process before the house becomes effectively
yours, and, if all goes well, you will leave the Notaires office
with an Attestation of Ownership (see below).
We feel that it is essential you are in attendance at the Notaires
office on the signing day, for obvious reasons. If this is not possible,
then you will need to appoint a power of attorney to sign for you,
in plenty of time. Also present on the day will be the estate agent
(normally) and, of course, the seller. We will also attend if you
wish.
It is wise to inspect the property before the appointed hour to
ascertain that all is as you remember it and that that lovely avenue
of trees leading up to the house that you fell in love with is still
there!
The Notaire will confirm receipt into his account, of the balance
monies from you. This you will need to have transferred before the
arrival of all parties at his office on the appointed day.
The Notaire will inform you of the results of his searches and
go over any Clause Suspensive The statutory reports (termites, lead
etc.) will be reviewed and validity/status confirmed (if, for instance,
remedial work has been carried out by the seller since the Compromis).
Next the Notaire will take the parties through the finances...
how the money is distributed - between the government by way of
taxes, the estate agent fees, the Notaires fees and, eventually,
the sellers' portion!
Insurance
It is a legal requirement in France to insure your property and
you will be asked to produce proof to the Notaire that you have
done so. Providing this insurance document is acceptable, then…
Everybody signs on the dotted lines... you now own a property
in France.
Attestation of Ownership - As
its name implies, this document declares you as the rightful owner
of the property. It is issued as the time-lapse between signing
the Acte de Vente and you receiving the deeds reregistered in
your name, could be six months or more. Being able to produce
the Attestation allows you to get certain things done, such as
water and other services connections etc.
Do not forget, that the Compromis de Vente and the Acte de Vente
will be in French as will all attachments and relevant documents.
You may wish to appoint a certified translator to be present at these
two vital legal stages.
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