Process of Purchasing a Property in France

The process of buying property in France can seem daunting with the regulations, strange process and of course the language barrier.  We have tried to put together a simple guide to help you through the process of buying a property in France.

Property inspections to be carried out by the Seller

When selling a property in  France the seller has to inform the potential buyer everything that they know about the property, including in theory, problems... Technical inspections must be carried out addressing a number of specific issues prior to the sale of the property completing.

Inspections Carried Out

• If the Brittany property is co-owned then the surface area must be provided pursuant to the Carrez Law. The seller must indicate to within a tolerance of 5% the surface area of the property and vouch for this accuracy for a period of one year after the sale. Services of a professional are normally used to take these measurements.
• Depending on the properties location in France tests may be required for termites and fungal issues.
• If the property is of a certain age a test for lead must be made. Properties constructed before 1 January 1948 must be inspected within the previous 12 months to the property sale.
• Since 1 September 2002 detached properties must be tested for Asbestos. For properties in Brittany built before 1 July 1997 a test for Asbestos must be carried out. This test must be carried out by an authorised, insured professional. If an Asbestos report is not carried out then the seller is liable for the removal of any asbestos that may be found on the property at any time over a thirty year period.
• Properties are now also sold with an energy efficiency value, just like you would expect to find on a Fridge or Freezer.
• There are currently inspections of all septic tanks in France to ensure that they are not polluting. A modern alternative that is much cleaner, uses less land and make little or no nasty smells is a compact package sewage treatment plants in France known as Micro stations d'épuration.

Purchasing Property in France

Notaires specialise in property and family inheritance law. They are public officials authorised by the government to prepare private contracts and are there to assist you. Any property transaction must meet the requirements of French and International Law.

Pre-Sale Agreement

A Pre-Sale Agreement is a contract between the seller and the buyer which in effect freezes the property ensuring no one else can purchase that property. The contract is normally valid for a few months during which time the Notaire will prepare the sale documents. This process normally takes about 3 months but can take longer to obtain the necessary paperwork, especially if the period passes within the August holiday period. This agreement is normally signed within a few days after the buyer and seller having reached an agreement on the property sale price etc.

This agreement obligates the seller to sell the property and the purchaser must normally provide a security deposit (usually 10% of the purchase price) after a 7 day cooling off period. These pre-sales agreements can differ a little, each having its own advantages and disadvantages. A Compromis de Vente (Purchase Agreement - which is the most common) is used when a buyer makes a commitment to purchase the property. Promesse de Vente (Undertaking to Sell) includes no such commitment but the buyer will still loose their deposit if they pull out of the sale. The Promesse de Vente must be registered within a strict time period or it is null and void, whereas with a Compromis de Vente there is no such requirement. These agreements are normally prepared by your notaire. The buyer may instruct their own notaire or share the sellers notaire with the fee being shared between both notaires.  Compromis de Ventes are normally used when it is an individual purchasing a property and a Promesse de Vente for developers.  Your Notaire will advise you as to which type of agreement is most  suited to your situation.
 

Suspensive Condition

A number of provisions (suspensive conditions) can be stipulated within the contract. These provisions stipulate that the contract will be invalidated and both parties released if certain events do or do not take place prior to the final sale e.g if the purchaser's mortgage application is rejected, certifcate d'urbanisme (confirmation of planning approval) is not approved, problems arising from the inspection reports etc. These Suspensive conditions have to be agreed between the buyer and the seller and ensure that for example; you are buying a property and need planning permission to convert into gites this condition is set out in the Purchase Agreement, if planning permission is refused the buyer may pull out of the sale and will not loose their deposit.

Once the Agreement has been signed the buyer has a cooling off period of 7 days during which time they can withdraw from the agreement and no deposit is paid.

It is also important to list in this agreement any items to be included in the sale. Some large objects that you may naturally assume are part of the house sale like stone feeding troughs in the garden, often disappear over night!

Completion

Once all the conditions of the agreement have been met and the Notaire has all the necessary paperwork the buyer and seller will meet with the Notaire for the signing of the Acte de Vente (Transfer Document). The balance of funds must also be paid including any tax and Notaires fees (normally the Notaire will insist on having cleared funds transfered to them a few days before the final signing. The Notaire will read through the document and both parties will need to initial each page and then sign the final page. The buyer will then receive an Attestation de Propriete (Confirmation of Purchase) and a receipt for the purchase price plus the keys to the property.

Fees and Taxes

When purchasing a property it is important to ensure that you know the full costs involved. The buyer pays all expenses relating to the sale and not all agents will show the full price when advertising a property for sale. These Notaires fees are primarily paid as tax. The Notaire is responsible for collecting the tax on behalf of the French Government. The tax is normally about 5% of the purchase price, together with another 2% for the Notaires fees and other miscellaneous fees. It is worth checking with the Notaire exactly what these fees are.
 

Glossary of Terms

Accompte - Deposit
Acte Authentique - Transfer Document  drawn up by the Notaire
Agence Immobilière - Estate Agent
Amiante - Asbetos
Attestation de Propriete - Confirmation of Purchase

Bon de Visite - Form completed by a person before they view a property.  This form means that if for a set period of time you wish to purchase the property viewed you must purchase it through the Notaire or Agent you signed the form with

Cadastre - Register for local town planning
Carte Professionelle - Professional registration of an Estate Agency
Certifcate d'urbanisme  - Confirmation of Planning Permission
Clause Suspensive - Suspension Clauses which can be included in the initial agreement for purchase
Compromis de Vente - Purchase Agreement Drawn up between the buyer and seller of the property.

DDE  - Department of the Environment

Etude de Sol - Test carried out for permission for a Septic Tank

Fosse Septique - Septic Tank

Immobilier - Property or Estate Agent
Impot - Tax

Mandat - Form
Mandat de Recherche - Form which a buyer signs when engaging an  agency to search for a property

Notaire - Public Official authorised by the French Government to to prepare private contracts

Permis de Construire - Planning Permission
Promesse de Vente - Undertaking to sell the property

Taxe D'Habitation - Habitation Tax payable for occupation of a property
Taxe Fonciere - tax payable for ownership of a property
Toutes Taxes Comprise (TTC) - price includes all sales taxes

This is our interpretation of the French regulations so please check with the Notaire for any changes in the regulations and how they apply to your property purchase. We accept no responsibility for any errors or misinterpretations of any of the information on this page.

Property Agents - Sites

English Speaking French Notaire in Pontivy, Brittany with a wide range of Brittany properties for sale to suit all budgets

Breton-Homes.Com
Breton-Homes.com listes Brittany properties only from carefully selected registered estate agents in Brittany, France and has a wide range of properties for sale in Brittany France.  Please see http://www.breton-homes.com

French House Insurance

Once you have chosen your house you need to start thinking about house insurance please contact www.french-insurance.com your bi-lingual insurance company based in France.  House insurance must be in place at the time of purchase.

Sewage Treatment for Small to Large Properties in France

If you're going to renovate a property in France or are buying one  where the existing septic tank is not upto standards then installing a compact sewage treatment plant could be the most cost effective solution. Plus you'll use much less land than with a traditional septic tank system. Visit www.micro-station-france.com for information on CE approved compact sewage treatment plants.