Buying French Property

Buyer's Guide

Key Financial Considerations

Buying in France follows a process quite unlike the one American and other overseas purchasers know at home. This guide walks you through the essential stages. Below is an overview of what to expect.

• • Calculation of total global budget after factoring in an additional 7.5% to cover acquisition costs
• • Borrowing Capacity. If you will need a mortgage, ask a lender for a preliminary evaluation before you start viewing properties.
• • Currency Fluctuations. Our recommended currency advisors will offer free advice on how best to anticipate and account for any fluctuations. Get your free quote by clicking here

Selling a property in France privately? See how we can help.

Being Fully Informed is Key

Once you have found your perfect home, the agency or owner selling it will provide the supporting information, including copies of the Diagnostic Survey and Drainage Report, which highlight any potential abnormalities and help you factor in future costs. These reports are commissioned by the vendor and designed to give the buyer a technical appraisal of the condition of the property.

The Diagnostic Survey examines the electricity and gas installation; the presence of any asbestos, lead or wood eating insects (particularly termites); the energy rating with an estimated annual energy consumption and information relating to the local area, notably any pollution risks, history of any natural risks (eg. flooding) and seismic zones.

The Drainage Report examines the conformity of the private septic system or the connection to the mains sewage network.

Please note that the above reports do not include a Structural Survey. If you are concerned about the structure of the building, you can commission an independent building surveyor to inspect it.

The Buying Process

Signing the Proposition d'Achat or Letter of Intent

When you make an offer, the selling agent (or the owner, in a private sale) will ask you to sign a Proposition d'Achat, which serves as a written offer for the vendor. Once the vendor has accepted it, they countersign the document and agree to reserve the property for a set period, until the relevant paperwork can be collated and sent to the French solicitor (Notaire).

Preparing the draft Promesse de Vente

The Notaire prepares a draft of initial legal contract, known as the Promesse de Vente. This draft is sent to both parties for their agreement. The purchaser is given the right, with the agreement of both parties, to stipulate any conditions of the purchase; these are known as Clause Suspensives. For example, the purchaser may request the sale be subject to a mortgage acceptance. These Clause Suspensives basically safeguard the buyer's deposit, which is otherwise non-refundable.

Any key points from the diagnostic survey and drainage report will be highlighted within this document and the full reports will be annexed to it.

Signing the Promesse de Vente

The Notaires prefer both parties to be present for signing the Promesse de Vente. If this is not possible, then either or both parties can sign by proxy. The Notaire draws up a Power of Attorney (known as a Procuration), which is then signed, witnessed and certified by either the French Embassy or a solicitor.

Some Notaires offer an English translation of the legal contracts — ask the Notaire handling your purchase.

Within eight days of signing, the purchaser transfers the security deposit equating to 5-10% of the purchase price. Then follows a ten day cooling off period, during which time the purchaser may elect to withdraw from the sale, without any penalties.

Signing the Acte Authentique

The second and final contract is known as the Acte Authentique and is signed by the vendor and purchaser in the presence of the Notaire. This legal document repeats the terms and conditions of the Promesse de Vente and serves to finalize the sale and transfer the Title Deeds to the new owners.

Buying Costs

The legal fees represent approximately 7.5% of the purchase price (equivalent to UK Stamp Duty). These are comprised of registration fees; local, departmental and national taxes; and Notary fees.

Agency Fees

Where a property is marketed by a selling agent, that agent's commission is normally already included in the advertised price. Notaire (legal) fees and purchase taxes are additional, as outlined above.

Browsing French Character Homes and sending an enquiry costs nothing: the portal is entirely free for buyers.

Ownership Costs

The Taxe d'Habitation is a local residential tax and is payable by the occupant of the property on the 1st January each year.

The Taxe Foncière is a tax imposed on buildings and land. It will be divided between the vendor and the purchaser on a pro-rata basis for the calendar year.

Both Tax bills are issued in October and paid in arrears.