Buying Property
Property Buying Guide
The process for buying property in France is relatively straightforward. There are no restrictions on foreign ownership of real estate although the process may take a little longer in France than in some other countries. It is always wise to appoint an independent lawyer to look after your interests when purchasing the property.
Once a property has been decided upon and the seller has accepted your offer, the agreement needs to be put into writing.
A solicitor or notary draws up a contract (compromis de vente) to be signed by both parties to agree the principles of the sale.
A 10% deposit is paid to take the property off the market and the funds are kept in an escrow or other secure account until the date of completion. If the purchaser withdraws in the next 7 days or the sale falls through because one of the conditions for it are not met, then he/she gets the deposit money back. If the purchaser withdraws after 7 days or for any other reason he/she loses the deposit. This is why it is unwise to sign anything in France unless you are 100% certain that you wish to proceed.
Once everything has been checked by the lawyer the signing is carried out by the buyer and seller, the documents are notarised and the sale can be completed in full, with all outstanding fees paid. The Land Registry is updated once the deed of sale is complete.
It should be noted that there are laws where you cannot take it for granted that your assets in France will be passed on to those you intend them to. The notary will assist you in drawing up a will to ensure that your property is dealt with in accordance with your wishes. To avoid unnecessary complications, this will need to be done prior to signing the final deed of sale.
Payable fees include applicable lawyer, estate agent and notary fees, usually coming to around 7.5 percent of the total cost. Other taxes and costs may be incurred on top of these charges.
Mortgages
The mortgage market is well developed in France and foreigners can often obtain finance for property purchase. If you own a property in your own country you can also release equity and borrow against this to raise the necessary finance.
Mortgages can also be obtained from British lenders such as Abbey, Halifax, HSBC and Woolwich, while specialist brokers may be able to get you a loan locally.
Some developers of new build and off-plan developments offer instalment plans over between 12 to 60 months and charges applicable vary according to developer.
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