Some advice before you start
People
also buy houses in France without speaking French. We don't recommend
it. Jean-Michél once wrote a cheque to a local merchant for a new
refrigerator and he looked astonished and told him that most of his
British customers hand the cheque to him and let him fill it out
because they don't know how to write a French cheque. If you don't
speak French, you should be able to get by, but it will be a struggle,
and your chances of getting ripped off will be high. You needn't be
fluent - few Brits truly are - our philosophy is, if you're not
prepared to have a telephone conversation with your builder, you're not
ready yet.
You
can visit properties for sale with one or more real estate agencies
(agences immobilier), on your own using published listings, or both.
English-speaking estate agents do exist, but many agencies will have at
least one agent who speaks English. For each property you inspect, find
out who has owned the house in recent history and how it has been used
(as a year-round residence, as a rental home, or as a holiday home).
Inquire about utility bills (electricity, e.g., is a good deal more
expensive in France than in the UK) and property and local taxes (they
vary by département and municipality). Enquire as to who the neighbours
are and what they do - We love to divulge information about the people
who lived nearby, and you can learn some useful information before
making a decision (Do not buy the house down the lane from the man who
breeds boar).
We would suggest that once you have found a property that is to your liking, you should draw up a monstrous list of questions to ask the vendor. It will more than likely give him a heart attack!!! But that is his problem!!!! You should ask about every system in the house (heat, electrical, water, gas) and every appliance. Have the vendor show you how to turn everything on and off. Run him around the entire property, ask where the septic system is and when it was last maintained, run water in the sinks to see if it drains away quickly and if there are there any strange smells? It is costly to get these fixed if they have not been taken care of. Ask what the property boundaries are, how the pool controls work - and make rough drawings of the property so you will remember everything. Also measure the house and make floor plans. Try and get the names and addresses of people who lived nearby who might care for the property when you aren’t there. Asked him for recommendations for workmen who might already be familiar with the house and who were reliable. Ask him about wild animals, about insects, about bushes and trees and how to care for them. Also get information about doctors and dentists, clinics and pharmacies. Ask about the age of the roof (and climb all over it to inspect it), what repairs have been made and when anywhere on the property, when additions had been put on, and who had lived in the house and how it had been used. Ask everything you can think to ask. Once you are satisfied then draw up the Initial Agreement.
Now, before you think you are going to make a killing on our property market, think again. That bargain property you saw on television for £20,000 and needing a few hundred spending on it to convert it into a house worth a fortune may or may not have existed. To say the least you will be lucky to find it nowadays. We (especially our estate agents) have certainly got wise to the idea that a pile of rubble with planning permission can actually be worth quite a lot of money.
Preparing for your viewing trip When
you're looking for properties in France, it pays to be prepared. Follow
the list below to make the most of your viewing trip.
· Make sure you have appointments booked with agents - don't expect to just walk in and see someone. French estate agents are very busy these days with English clients.
· Speak to the agent before you cross the Channel. You'll feel more comfortable on the day if you've already spoken to your local contact and it helps to know that they speak English if your French isn't up to speed.
· Ensure that the houses on the website (or the ones for which you hold details) are still on the market - you don't want to make this trip and find you can't view the properties you're interested in.
· Book your ferry crossing or flight in advance.
· Allow at least one full day to view properties so that you can spend enough time in each to get a decent impression. Remember too that properties may be quite some distance from one another.
· Try to arrive the day before viewing rather than on the day itself. Viewing is very tiring and you'll need all the energy you can get. If you have time, it's good to take several days for your trip, so that you can travel on the first day, see the area on the second, view properties on the third, and then leave yourself a final day to take a second look at something you're interested in, or get started on the paperwork.
· Go ready to buy the house (arrange finance in advance if you can). If you delay, someone else might snap up the property from under your nose.
· Take refreshments. You may not be able to stop for food and many French restaurants are open only at lunchtimes and evenings, especially in rural areas.
· Wear sensible clothing: you may be crawling through derelict or dusty properties or stomping over muddy fields. Wellington boots are very useful. If, however, you are visiting elegant properties such as chateaux, dress appropriately - business dress is usual.
· Meet the French agent in his office so that you can see his set-up. Don't just arrange to meet up in a car park.
· Be on time. If you are running late, let the agent know.
· Inform the agent in advance if you are taking children with you so that he can tailor the day accordingly (he may, for instance, want to build in more breaks).
· Try to take with you only the people actually involved in the purchase. It's not useful to have endless second opinions from friends and relations.
· You may be asked to sign some paperwork before going out to see houses (a 'bon pour visite' or a 'mandat de recherche'). Neither of these documents commits you to buying anything, they are simply there to prove which agent has shown you which properties (and thus protect their commission, since each property might be with several agents).
Be honest with your agent. Tell him what you like and what you don't, and why; this gives him a better chance to show you the right properties.
The Transaction
The laws relevant to the purchase of a property, depend to some extent on the type of property you buy. For example, a vineyard or farm will be subject to different procedures and costs.
On the assumption that you are buying a house with 1 hectare (2.47 acres) of land or less then the procedure is as set out below.
Should the house have more than 1 ha. the procedure is basically the same except that there might be intervention by The Société d'Amenagément Foncier et d'Establissement Rural (SAFER) which has an automatic right of pre-emption in order to preserve land which it feels should either continue or remain in agricultural use. It rarely exercises this right, but the Notaire (roughly the equivalent of a Solicitor/Lawyer) is under an obligation to notify the SAFER to give it the opportunity to object to the sale. Should it do so, then any agreement is null and void and you can recover the deposit paid on 'exchange'.
Initial Agreement
An agreement is negotiated between buyer and seller and the initial contract which is called a Sous-seing Privé, if drawn up by an French Estate Agent, or a Compromis de Vente, if prepared by the Notaire, is then signed by both parties. This is a legal document, binding on both parties and should not be taken lightly. At this stage the buyer pays a deposit of a minimum of 10% of the purchase price which remains `blocked' in a special account at the Notaires office until such time as completion takes place or the purchase is aborted. At this stage the property is taken off the market.
There are other kinds of less familiar contract such as the Promesse de Vente where the contract is not binding on both parties to the same extent as the Compromis. By signing it the vendors still commit themselves to selling the property to the purchasers, but this commitment takes the form of promising not to sell it to anyone else within a stated period, usually 3 months. A deposit of between 5% and 10% is again paid and again the purchaser will usually forfeit the deposit if they do not go ahead.
There exist other forms of preliminary contract such as the offre de vente, offre d'achat and an exchange de lettres - none of which are recommended in preference to the Compromis or the Promesse.
Surveys of the condition of the property you intend to purchase by professional surveyors or 'experts' are unusual in France. It is more usual to request local artisans to give an opinion as to the condition of say the roof, or the walls and for them to give quotations for the work. French buyers would be more likely to approach an architect or 'expert' but even then it is unusual for them to be asked to prepare a detailed report as has become `de rigeur' in certain European countries. From the 1st September 2002, an asbestos report will need to be undertaken before the completion of the sale. It is certainly prudent to carry all this investigative work before signing the Compromisas once this agreement has been reached - as mentioned above - it is binding on both parties. Once the Compromis or Sous-Seing Privé has been signed there follows a period of generally 6 - 8 weeksin which the searches are carried out to ensure that the property is not subject to any imminent environmental changes and during which time the purchaser will be required to resolve the financing of the purchase. These searches and the other contractual matters are carried out by the Notaire. The Notaire is unlike most European Solicitors/Lawyers as he is not appointed to act for either party in the transaction but as a public official whose duty is to the State. Their function is to ensure that the transaction is carried out legally and accurately and in accordance with the proper processes and to give the transaction absolute validity that cannot be contested. Accordingly, it is unnecessary to appoint a second Notaire to act for yourselves, although you may feel more `comfortable' having your own Notaire or perhaps European Lawyer to explain some of the points that arise which may be unclear as it unusual for Notaires to volunteer advice..
If the buyer intends to take out a mortgage then it is necessary for this to be declared at the time of the agreement and a substantive clause in the Compromis protects the purchaser's interests in the event that a loan is not made available. In this event, the sale does not proceed and the deposit is returned. In the event of the discovery of a `planned nuisance' through the searches, the buyer can withdraw and the deposit is returned. Should, however, the buyer break the contract, the deposit is paid to the vendor as an indemnity - conversely, should the vendor break the contract, the deposit is returned to the purchaser.
At the end of this period, which can be extended at the agreement of both parties, the final contract,
the Acte de Vente is signed at the Notaire's office and the property
passes to the buyer, who must pay the balance of the purchase price to
the Notaire who then pays the vendor. It should be noted that the
balance must be in the Notaire's possession before the contract is
signed. It will also be necessary to provide to the Notaire before
completion a copy of your birth certificate translated into French and,
if applicable, a copy of a Marriage Certificate also in French. Early advice should be sought in order to understand fully the complexities of French Succession Law
which does not allow you to leave your share of the property to whom
you wish - even if you have an existing Will. There are ways of
circumnavigating these laws but if you wish to leave this French
property to your heirs, the cats' home or whoever, then it will be
necessary for you to Take action before the purchase is completed. Any provision made MUST be included in the final contract. From the signing of the Contract the purchaser is responsible for the insurance of all the buildings on the property.Final Contract
The buyer pays the legal fees and registration taxes which amount to approximately 7.5% of the purchase price, including any geometrist's costs that might have been incurred such as establishing boundaries, repositioning boundaries and preparing plans for the Acte de Vente. These fees are paid to the Notaire on the day of signature of the Acte de Vente and are paid as an 'all encompassing' sum together with the balance of the purchase price.Fees and Commission
The vendor pays the Agency's commission. Under certain exceptional circumstances these are paid by the purchaser but if this is the case this should be agreed in advance and included within the Mandat, the official instruction from the Vendor to the Agent, and made known to the purchaser at the outset.