A Guide to Buying Property in France

The procedure for buying property in France differs slightly depending on if it is an off plan property or a resale property in France.

Off Plan Property in France

Step 1 Signing of reservation contract - "Contrat de reservation"
At this stage you usually need to pay a 5% deposit. This needs to be signed and returned to the developer or agent.
The developer or agent will then sign and return this to you. At this stage a cooling off period of 7 days begins. You have 2-3 months to finalise a mortgage (if you need to get one for your French property). You need to send confirmation of application for mortgage to developer / agent. Once you receive the letter of approval for mortgage this needs also to be sent to the developer / agent. *If you are obtaining a mortgage for the purchase of the property your contract should provide for you to withdraw from the purchase should you not obtain the necessary funding. This is known as a "clause suspensive" Once the notaire receives letter for approval of mortgage he / she will prepare the deed of sale and send to you.

Step 2 Signing of Deed of Sale - "Acte de Vente".
To sign the deed of sale you can make an appointment with your Notaire or if you don't want to travel you can sign a proxy giving your notaire the authority to sign on your behalf. At this stage you will usually have your first stage payment (usually 30% - 5% initial deposit). Transfer of ownership will be given to you on signing of the deed of sale. Throughout the remainder of construction you will have a series of stage payments. A schedule of work, certified by the surveyor will be completed. Once each stage is completed you will receive a letter from the developer requesting the next stage payment. Once construction is completed and all your stage payments have been made you will be given the keys to your property.

Purchasing a Resale Property in France

Step 1 The "Compromise de vente" - First contract
This is the first contract which the purchaser and vendor will sign and is a legally binding document. In France there is a two contract purchasing procedure. The first contract ties both parties into the purchase whilst the searches are done and other matters are sorted out. When both parties have signed, the price of the property cannot change. There will be a delay of approximately 3 months while the notaire works on finalising all matters. A provisional completion date will usually be set in the first contract and if this date is not met the vendor maybe free to withdraw from the proposed sale and keep your deposit. It important that the purchasing procedure is carefully monitored to make sure the purchase is not lost through poor timing. To enable the compromis to be compiled you will need to supply various pieces of personal information (birth certifications, marriage certificates, divorce or death certificates, passports) together with any information on financing the purchase.

Lead, asbestos and termite reports: These reports are required by French law. It is the vendor's responsibility to obtain and pay for them where required under the terms of the contract. A compromis should not be signed unless it is accompanied by these reports which, of course, will be in French. If there are any problems with the property which are brought to light in the reports it is essential to negotiate with the vendor as to who will be responsible for the remedial work. You will need to know when it will be done, at whose costs and to ensure that any such agreement is contained in an amendment to the compromis. Something missed at this stage could be very costly later. The cooling-off period: Once both parties have signed the compromis it will usually be sent to your home address by recorded delivery. Purchasers have a 7 day cooling off period from the date of receipt of the compromis. This is the time which should be used for obtaining a survey if you wish to and for negotiating with the vendor if there are problems with the lead, termite and asbestos reports. After this point the contract is binding on both parties. Your legal adviser should advise you on what to do during this period and how matters proceed at the end of it. It is normal for the 10% deposit to be sent to the notaire when the 7 day cooling off period is over or this may be requested as soon as the compromis is prepared. If you need a survey done on the property you will need to act very quickly to ensure that this can be done during the 7 day cooling off period.

Searches: All property in France is registered and it is the work of the notaire to obtain all the reports needed in connection with the purchase. He or she will conduct searches on the ownership of the property, the land boundaries and the rights of way plus ensuring that any essential planning permissions have been obtained for works carried out. This can seem a time when nothing is happening and can be a little disturbing as you are back home so far away from it all.

Insurance: It is a criminal offence in France not to have your property insured.
Power of attorney: As completion day draws near you will need to decide whether you can return to France to sign the final contract or whether you need to sign by power of attorney. This will give someone in France (usually the clerk in the notaire's office) the right to sign the contract on your behalf. As the final contract declares that you are taking ownership of the property in the state in which it exists on the signing date, it is important to check the property over before you sign.

Step 2 Deed of Sale - "Acte de Vente"
Before attending the final signing you will need to check over the property and the contract. It is likely that the contract will arrive with you very close to signing date and it will be in French. The notaire may arrange for a translator to be at the signing to assist you. At the end of the signing process you will be handed an attestation of ownership by the notaire while the deeds will be sent away to be registered. You will need to remember to chase for the return of these about 6 months after signing.