It's indeed quite hard to think of another European country which offers such climatic variety, scenic contrast and cultural richness as what you fill find in France.
Basically, almost everything you might be looking for can be found there. We have taken a snapshot of each region, to give you a sneak peek of the treasures waiting for you...
Given a little guidance, buying a French property is easy – and not that different from buying in any other country. Here’s a basic “how to”:
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1. First of all, fix your budget
How much are you willing and able to pay? Get 100% clear about this from the start. You will soon discover if you can buy a chateau or a cagibi (broom cupboard) in your chosen area!
2. How much can you borrow?
How much you can borrow depends on what you would like to reimburse every month. Monthly repayments should not exceed 25-33% of your income.
3. Find that dream property
You can find your dream house through private classified ads in newspapers or on the Internet, or from ads published by estate agents, "notaires" (notaries) or property developers. Examine properties you visit carefully – and take notes as you go along, in order to remember them in detail.
4. Negotiate the price
Negotiating the price is part of the game, so play your cards right! Put yourself in a strong position by noting negative aspects of the property and points that need attention.
5. Eureka! You have decided to buy!
Have you found the ideal place? Great! Now you must “reserve” it, by signing a "compromis de vente" (provisional sales agreement) – or a "contrat de réservation" (reservation agreement) if you are buying new property. This is a critical moment, because you are legally and financially committed, with limited possibilities for backing out!
6. Request a loan
Go to the “Contact us” page to see how to contact Crédit Foncier (by phone, Internet or visit to a local branch office) to request a loan. You will also even find a simple loan-simulation request form you can fill in directly online.
7. Completion
The deed of conveyance is drawn up by a notaire – a legal professional who ensures that all the legal niceties are observed. He will give a copy of the deed of conveyance to both signatories. Completion may take up to 2 to 3 months from the signing of the provisional agreement.
8. Conveyancing fees
As well as reimbursing the notaire for bills he will have settled on your behalf, you will have to pay a taxe de mutation (transfer tax) of approximately 5% of the selling price, and various other taxes (property registration, stamp duty, VAT on new construction). These can amount to between 6% and 8% of the selling price and around 4% for a new property (plus VAT at 19.6%).
| New or old property | New construction | |
|---|---|---|
| Estate agency fees | Between 4% and 8% of the purchase price |
Between 8% and 10% of the purchase price of the land |
| Notaire fees | Property category:
|
For the purchase of land: about 4% of the purchase price |
| VAT | For a property under 5 years old: VAT at 19.6% (included in the purchase price announced by the property developer) |
For land of:
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| Specific costs | For a joint-ownership property:
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| Local taxes |
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| Loan fees |
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9. Insuring your new property
As a property owner, you are responsible for any injuries or damage your property may cause to a third party (a tile falling on a passer-by, water damage, etc.) or capital loss. You must therefore take out a comprehensive homeowner’s insurance.
10. Group acquisition
If you and some friends or family members want to buy a holiday home jointly, a good move is to do this by setting up a "société civile immobilière" (SCI) – a non-trading property-investment company. A notaire or an estate agent can advise you about this solution. N.B. The suitability of this buying approach depends on the tax laws in force in your country.
People you will be dealing with
Buying property in France involves dealing with various commercial and legal protagonists
The notaire
In France, all property transactions go though a notaire, who, as a public official and legal professional, certifies the legal status of a property sale. His role is neutral and his fees are fixed by government decree. A notaire can also play a more commercial role, acting as intermediary between vendor and buyer.
The estate agent
As an intermediary between buyer and seller, an estate agent offers properties for sale, organizes visits to the property and contributes to the negotiations. He may draw up the preliminary sales agreement. Estate agents' fees are not regulated, but the rate of commission must be displayed. Usually between 5% and 8 % of the selling price, the commission is payable when the sale is concluded.
Vendor and buyer
Vendors and buyers are often just private individuals but either or both may also be a legal entity, such as a company or an SCI (non-trading property-investment company).
The property developer
A property developer builds houses and apartment buildings for sale and usually sells them before building work has started. "Off-plan" purchasing – "vente en l'état de futur achèvement" (VEFA) – is a highly regulated process and buyers enjoy wide-ranging guarantees.
The architect
Architects advise in cases of construction or restoration of public and private buildings. You may need an architect's advice regarding quality of construction in case you need to have improvements or renovation carried out.
Preliminary sales agreement
When French property changes hands, the agreement between seller and buyer must be formalized in a written contract known as a promesse unilatérale de vente or compromis de vente.
Both are preliminary agreements that come before the final sale contract, to give the buyer time to obtain financing and the notaire time to collect the documents required for proceeding with the sale, when the acte authentique de vente (deed of conveyance) will be signed.
Both agreements can be signed privately (acte sous seing privé) or in the presence of a notaire. They are very important for both parties, considering the scale of their respective commitments, in that they give a clear definition of the terms and conditions of the future transaction.
The promesse unilatérale de vente (unilateral agreement to sell) only commits the seller to selling the property at a certain price during a certain period of time. The document must be registered with the Tax Office Registrar within 10 days, failing which the document is declared null and void. The registration fee is € 76.22, plus stamp duty. The agreement to sell includes a specific clause specifying that the buyer must inform the seller of his decision to buy by "taking up the option" before a predetermined date.
The compromis de vente (provisional sales agreement) commits both parties and is equivalent to a final sales commitment. It is not necessary to register this contract. Unless you are absolutely sure that you want to buy a piece of real estate, do not sign a compromis de vente. It will commit you to buying the property almost to the same degree as a final sales contract.
Both types of document must include the following clauses:
Personal details
Personal details of the seller(s) and buyer(s). The property: date of the previous deed of conveyance or donation, the name of the previous owner(s), the name and address of the office of the notaire who authenticated the deeds, a precise description of the property and its future function and the surface area of the property reserved for private use when the property forms part of a condominium.
The selling price
This clause must specify the price of the property and conditions of payment and give information about any property loan or loans taken out with a view to its acquisition. If the sale is going through an agent, the price given should exclude commissions, to avoid paying transfer duty these commissions. These commissions should, however, be mentioned in the provisional sales agreement, specifying that they are to be borne by the buyer. Signing a provisional sales agreement usually requires the buyer to pay a deposit of 10% of the property's value. The selling-price clause should include a reference to the amount of deposit paid.
N.B. The buyer must not pay anything prior to signing the preliminary sales agreement. When signing the preliminary contract, the buyer must not give the deposit directly to the seller but to a professional authorised to receive such funds (the estate agent, if he is empowered to do so, or the notaire).
Avoidance clauses
These define the conditions under which the buyer is released from his obligations as defined in the preliminary contract. The most common is the clause making the final agreement subject to the prospective buyer's ability to obtain a loan. If the potential buyer fails to get the necessary loan, he will be released from all commitment and is entitled to recover the deposit he paid on signing the preliminary sales contact. These avoidance clauses may also concern the sale of the buyer's previous property, the granting of planning permission and/or permission from the condominium's owner association if the buyer wants to enlarge or modify his future property, the obtaining of a certificate of compliance for work previously carried out by the seller, the absence of encumbrances or occupiers, and damage to or destruction of the property concerned.
