The French Sale process

So you have found the property of your dreams what happens next?

I suppose you ought to know at this stage that in France it is often the buyer who pays the estate agents fees. Agents' fees could be anything from 5% to 15% although 7% is more common Our Fees are 4.18% plus VAT, which totals 5% inc VAT for single agency, and .. 5.88% plus VAT which totals 7% for multiple agency. It can also be common to see the same property advertised with different agents for different prices. Usually as a result of the agents' fees being different. In Oloron, rates go up to 13% with the other cowboys

The first step of the purchase process is called the “Compromis de Vente” which is a pre-sale contract which basically commits both the seller and buyer to the sale. The compromise is usually completed by the agent if he holds the appropriate authorization ( we do!!) or the Notaire. There is a period of reflection of seven days when you can change your mind. The vendor however is not accorded this facility and is legally committed to selling the property to you at the price agreed. Outside of this period you are committed to going through with the purchase and the vendor is committed to selling the property to you. You can however insert certain clauses which would effectively cancel the transaction. These clauses are referred to as “Conditions suspensives de la vente” You are normally asked to pay a deposit of 10% at the time you sign the “Compromis de Vente”. Mke sure you have aFrench Bank account if you want to pay by Cheque, or arrange a currency transfer ( See web page "Changing pounds to Euros") All details of the sale should be included in the “Compromis” sale price, agents fees, name of the vendor and your own details. There is no legal obligation to sign the “ Compromis” in France . You do need to bear in mind however that the property can still be sold to another buyer until it has been signed by both the vendor and purchaser.

IMPORTANT

If you are purchasing a property in France with the aid of a loan you should ensure that there is a clause in the pre-sale agreement that states if for any reason you do not obtain your loan that the purchase will be cancelled and any deposit you have paid will be returned to you, less the 300 Euros the Notaires charge for the signing of the copromis. With the pre-sale agreement signed and both parties legally committed to the transaction the Notaire will start to prepare the final contract. Property in France is “Sold as seen” in fact the Notaire will point this fact out to you at the time of signing the final contract. Certain banks but not all may send a valuer to visit the property to ensure they are happy with security being offered.

The “Acte de Vente” or the final contract. This will be drawn up by the Notaire. It is probably worth mentioning here the role of the Notaire. The role of the French Notaire is to ensure that the transfer of ownership of the property is carried out in accordance with French law. The Notaires' role is not to advise the buyer or seller and quite often the same Notaire will act for both parties. The final act should be ready approximately 3 months after the pre-sale agreement has been signed. The Notaire will confirm the seller owns the property being sold, there are no outstanding loans on the property, the identity of all parties must be established, and the Notaire should carry out a local search to verify there is no adverse planning application that would affect the property.

You do not have to attend the final signing in France person, unless there is a loan involved in the purchase. . You can appoint a person with “Power of Attorney” to attend and sign for you. Although the occasion is worth making the effort to be there in person for. You must ensure that the Notaire has all funds readily available within their client account to complete the transaction on the designated date. If not this can result in you not only losing the property but also losing your 10% deposit!

After the signing of the contract you are handed the keys to your new property.

Welcome to France !!

Hit Counter