A Buying Guide on Investing in property in France

written by: Ray Blanchett; article published: year 2007, month 06;


In: Root » Legal and finance » Investing » A Buying Guide on Investing in property in France

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France has a lot to offer most people from many beaches, country life, rural hamlets, towns and major cities.  Historic buildings, ski resorts, and relatively cheap property in comparison to other western countries it is no wonder many people choose to relocate to France.  Property developers choose to build apartments and houses in towns and cities where there are large metropolitan areas to service demand for housing.

First thing to remember, the process is not the same and cultures are not the same as other western countries.Purchasing property in France is the responsibility of the buyer to pay for all fees. What death duties are to be paid are levied. What is included in the total cost of your next property in France:

-  Lawyer/notaries fees.  (Between 6% to 8% of the property value).
-  Agent fee, ranges from 4% to 10%.  Average fees are between 6% & 8%.
-  Agents give you a property price with their fee included.  (FAI).

Thus far.  Ask what is included in the cost, concerning fees! The offer of thousands below the asking price will in general be declined, as the process is to either pay the asking price or very near the asking price.

Some things more to check before signing the contract:

1.  (Compromis de vente)  Acceptance of the offer shows you are serious about buying ( Legal bindind paper), or a promesse d'achat if offering below the asking price.  The compromis is like the first draft of the final contract setting out the details of the property purchase, and of course to be signed by both parties. 

2.  At the first stage you can insert certain conditions of the sale, such as survey, obtaining a mortgage, no planning permission which must be detailed in the compromis as 'clauses suspensives'.  The process requires evidence of who you are such as a passport and other documents and the Compromis de vente can take around 4 weeks to obtain.

3. The compromis is signed by both parties, and is returned to the buyer, and then you then have a seven-day cooling off period.  In this time, you can withdraw from the sale without penalty but the vendor/seller is not permitted. 

4.  Once the seller has agreed to sell the property to a buyer and the papers have been signed then you as a buyer who signed have full rights to buy that property.  Not like the English system!

5. Once the cooling off period is complete, the contract is binding on both parties and then the deposit is due.

6. Deposit is payable at 10%.  

Surveys in France are not typical, although can be conducted if you wish at your expense.  You can not conduct a survey until the compromis is signed by both parties, and at that time all other searches in the contract can only begin, which the lawyer/notaries looks after.

As like all other western countries inheritance laws are in force in France and legal advice shown be taken.

Please remember to transfer the monies due in plenty of time to meet any deadlines of payments, taking into consideration of changing money and sending it abroad which takes time.  Miss the deadline and you can loos all rights to buying the property and any monies paid.

Signing for property in France is conducted in the notaries’ office, and it's usual for the buyer to be there, although you can arrange a power of attorney for it to be signed in your absence. 

Arrange to view the property on the day of the signing because the final contract (project) has a clause saying 'sold as seen on signing date, what is in the sale? Fixtures and fittings, garage, sheds, white goods and land?

Summary:  Buying property in France is strictly controlled to safeguard both parties.  A large range of property to buy from farms, apartments, graded renovation projects and beach homes.  Inheritance laws in France take into consideration family members and a property will be divided between all family members should someone pass away.

www.propertyworldwideplace.com

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